Courtesy of Declan.
In a break from tradition, instead of the typical Friday gain we instead got another round of selling; negating the bullish setup from Thursday. To add insult to injury, volume climbed to register distribution.
The S&P finished on the rising trendline, but just below 20-day MA. Technicals show bearish MACD, On-Balance-Volume, and ADX trend. The 50-day MA could be the last chance saloon for a breakdown.
The Nasdaq is caught in the middle of its rising wedge. So while it was rebuffed at 5096, it still has 5038 support, 20-day and 50-day MAs.
The Russell 2000 has long since dropped out of its rising channel from January, but is trading near resistance of the resulting downward channel. It’s also trading at converged 20-day and 50-day MAs. While it has suffered a relative loss to the S&P, it still enjoys bullish Stochastics, CCI, and MACD technicals.
Monday is an important day for the indices. A weak start could make it a long week for bulls. But at some point, this back-and-forth will end, and when it does a substantial move should emerge given the extended nature of this trading range. A move down would appear to be the easier of the two options, but this would mean betting against the 6-year bull market.
