Afternoon Recovery Creates New Spike Lows

Better stuff from bulls as early selling quickly gave way to fresh buying. Best of the action belonged to the Russell 2000 with a bullish cross in the relative performance with the Nasdaq and its 20-day MA. The Russell 2000 is also clinging to a support level and maintaining the ‘Bear Trap’.

The S&P finished with a higher close and a return to the ‘buy’ trigger in On-Balance-Volume.  Today’s spike low moved into the prior consolidation, but there appeared to be enough buyers willing to step in to defend this range.

The Nasdaq didn’t post a higher close, but it did defend the lows.

While January spike lows are a clear marker for a reversal, today’s action was the confirmation to suggest January’s lows are also a swing low.