I had mentioned previously how the was set up for a double top with a pair of gravestone doji, but it was the which lost more yesterday.
The NASDAQ gapped down off resistance but it remained above its 50-day MA. The MACD and Stochastics are on a trigger ‘buy’, with other technicals bearish – so there is a bit of a mixed bag here. The index is underperforming relative to the , but with the trading range still in place, any action between support and resistance is of lesser significance.
COMPQ Daily Chart
The Dow Industrials barely budged, despite looking the most bearish of the indices at the start of the day. Given the general bearish tone across the indices yesterday, there is still an edge in favor of losses for the index. Volume registered as distribution, but the candlestick wasn’t too bearish.
INDU Daily Chart
The gapped down after recent action just below resistance. Support at the 20-day MA held but as with other indices, yesterday’s volume registered as distribution.
SPX Daily Chart
The Russell 2000 reversed off resistance of its trading range, but nothing too concerning. Yesterday’s volume registered as distribution but price action remains more bullish within this range. Support of converged 20-day and 50-day MA is available if required.
IWM Daily Chart
While a bearish day, it impacted indices in a manner which left them in a position to recover given their proximity to resistance, and the chance for upside breakouts. Another loss would flag concerns, but yesterday wasn’t that day.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.