Courtesy of Declan.
Sellers had looked to press in early trading, but buyers were again there to bid markets higher as they approached last week’s spike lows. The net result leaves things as they were with Friday’s jobs data the next opportunity to move the needle.
The S&P may look to tag the 50-day MA if sellers get another swing on this. If buyers are able to continue with today’s afternoon action then a tag of 2,200 should be feasible as part of this rally.
The Nasdaq recovered to take back ‘bear flag’ support. What had looked like a breakdown was negated by today’s late buying. Friday’s action may be telling.
The Russell 2000 is circling around the breakout level of 1,245 and 20-day MA support. More is needed here, although technicals and relative performance suggest bulls retain the advantage.
Tomorrow may not see much action with Friday’s job data looming. Traders return from summer holidays after the Labor day break. The next move is likely to be significant given the lacklustre action of recent weeks.
You’ve now read my opinion, next read Douglas’ and Jani’s.
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