Courtesy of Declan.
With indices experiencing small changes, 20-day MAs are starting to look like a defensive point for bulls to work the next rally.
The Nasdaq finished higher after a defensive push off its 20-day MA. This didn’t make any significant changes to the technical picture, but it does suggest the possibility a new swing low is in play.
The Dow Jones Index is also at the 20-day MA. It too has a MACD ‘sell’ trigger to overcome, but it has a good past trend to leverage and is close to an On-Balance-Volume ‘sell’ trigger
The Russell 2000 index continues to struggle, but despite a series of losses it’s not yet oversold. Relative weakness of the index against the Nasdaq took a step lower as the index struggles to attract value buyers. Look for worse to follow.
For tomorrow, look for further positive actions from Large Caps and Tech. Small Caps are struggling for attention, but if buyers do step in, then Small Caps could make the biggest relative gain of all indices.
You’ve now read my opinion, next read Douglas’ blog.
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