Stock Market Commentary: Markets Hold Their Ground
Courtesy of Fallond Stock Picks
There was a chance with the return of traders that Friday’s recovery would have been erased, instead buyers stepped in to protect the gains achieved following Friday’s gap down. The Nasdaq closed above its 50-day MA on higher volume accumulation.
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The Dow held its breakout for another day but also finished with a MACD trigger ‘sell’. Although the ‘sell’ was countered by an accumulation day.
The Russell 2000 did well to recover its early day losses, but it still finished the day below its 20-day MA albeit on a bullish hammer (however – stochastics are not oversold so the candlestick as a reversal line is weak).
The S&P hasn’t quite had the same strength as the Dow; a MACD ‘sell’ and a confirmed loss of the breakout is softened by support at the 20-day MA on an accumulation day.
Tuesday looks set to close a little more of Friday’s breakdown gap, but then the challenge for bulls begins.
