If there comfort for bulls in the short term its perhaps the opportunity for a swing back tomorrow - especially if there is an opening gap down and bearish run over the first hour of trading. Value buyers need not rush in; investors with a long term outlook will look to a minimum price cross above the 50-day MA to offer some semblance of buying into strength. Bottom fishers would be best to wait for the S&P to get beyond 20% from its 200-day MA, although in an earlier post on the Zignals blog. buying could start once the S&P drifted 10% or more away from its 200-day MA.
As for the individual indices, the S&P saw a reversal in the early-stage 'buy' trigger for on-balance-volume, not to mention the distribution day. Any semblance of a 'bear trap' were blown away by Monday's selling. August lows are also broken.
($SPX)
via StockCharts.com
The Nasdaq returned net bearish technically after a (very) brief bullish spell. Volume climbed in distribution and like the S&P it lost August swing low support.
($COMPQ):
via StockCharts.com
Nasdaq Breadth also took a hit as the bearish wedge in the Percentage of Nasdaq Stocks broke to the downside as technicals returned net bearish.
($NAA50R)
via StockCharts.com
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