Courtesy of Declan.
A respectable day for markets, unwinding much of the damage caused by Friday’s selling. Volume was down, which softened the day’s buying.
The S&P had the best of the action, which was a little against expectations for Tech/Semiconductors to drive the gain.
The Nasdaq only managed half the gain, but there was still a lingering weakness with some selling into the close. The 20-day MA is acting as supply.
The Russell 2000 broke rising support on Friday and while it gained today it didn’t do enough to recover the trendline break.
I haven’t mentioned it much, but VXN volatility is looking like it’s setting up for a spike move higher. Having said that, it did likewise in early 2013 and it spent the next two years moving sideways as the Nasdaq piled on the gains.
Tomorrow is a chance for bulls to press their advantage. However, there is need for some supporting volume.
You’ve now read my opinion, next read Douglas’ and Jani’s.
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