Riding Support In S&P, But Nasdaq Breaks

Sellers took control of markets with the Nasdaq following prior weakness in the Russell 2000 with a breakdown. This just left the S&P trading at support with very little room for maneuver if bulls don’t make an appearance tomorrow. Volume climbed in confirmed distribution and there was a ‘sell’ trigger in the MACD.

The Nasdaq was less fortunate with a clean slice through trendline support. There was also a ‘sell’ trigger in On-Balance-Volume. There is still a chance for bulls to trap shorts tomorrow, but there is work to do for this happen.

The Russell 2000 had already lost channel support, and it took a swing at a further leg lower on today’s loss. Next support is found at 1,206 and 200-day MA.

Tomorrow could see an acceleration of losses as bears look to crack the S&P. If shorts/sellers fail to do so, then look to the Nasdaq to build a bullish revival. 

Print Friendly, PDF & Email

Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

Share This Post On

Submit a Comment

Your email address will not be published. Required fields are marked *