Courtesy of Declan.
After days of tight trading, bulls decided to take money off the table following a slew of economic data. The S&P finished at rising support after tagging the 50-day MA. Today’s selling hasn’t totally reversed the rally, but another day like today would seed enough doubts in bulls to restrict dip buying.
The Nasdaq looks to be double topping around 5,100. It finished at its 20-day MA, but has room to maneuver down to rising support. Unlike the S&P, the Nasdaq could survive another day of selling.
The Russell 2000 is shaping a downward channel, finishing the day on its 50-day MA. Small Caps have struggled since April and given relative (under-)performance to Large Caps and Tech, looks ready to continue lower. Technicals are a little mixed, especially with the -DI leading +DI and the MACD ready to trigger a strong ‘sell’.
For tomorrow, bulls will be looking to the S&P for a bounce. If buyer don’t make a stand in the first hour of the cash market opening, then the Russell 2000 and Nasdaq could experience the brunt of the disappointment.
