It was a mixed day for markets. Bulls will take heart there wasn’t an immediate follow through lower as Friday’s selling had looked to suggest. Bears will still consider it a favourable market, but will need a more decisive sell off to break the support which remains.
The S&P is delicately poised. A loss of 1,956 will open thing up and should quickly offer a retest of 1.867. Today’s volume was very light, but enough to maintain the ‘sell’ trigger in On-Balance-Volume.
The Nasdaq has probably done enough to register the support breakdown, but hasn’t fallen enough to force longs to liquidate their positions.
The Russell 2000 may be edging a breakdown. Today’s loss was minor, but it may be enough to suggest further selling is to come.
The easier path still looks to be down, but bulls can take some comfort today didn’t bring the rout which had started to emerge as afternoon trading brought lower prices. Watch for a spike low on any rapid sell off as value buyers look to put a bottom in the market.
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