Courtesy of Declan Fallon
With the dailies toying with March reaction lows, there is more support on offer from weekly timeframes.
The Nasdaq is bang on channel support from the March 2009 low. Technicals are in neutral territory but price is king. Even if this failed there is 2,535 support to look too.
The Nasdaq 100 hasn’t quite made it back to channel support, but does reside at horizontal support from the 2007 high.
The Percentage of Nasdaq Stocks above the 50-day MA is in (value) bounce territory at 21%.
As the Nasdaq Summation Index also enters ‘value’ buy territory.
The Russell 2000 has weekly support at 760; this looks better on the daily timeframe but all angles should be considered.
While the S&P 500 is trading at channel support anchored by March reaction low.
So there is reason for optimism on the weekly and daily timeframes. Should these support levels break it will push markets below the 7-month consolidation and leave anyone who bought stocks over this period holding a losing position. This would generate a significant amount of supply for any future rally, but that is not the concern at current pricing. A bounce for next week? Tech to lead?
