Buyers concentrated their attentions on the S&P, but the attempted rally stalled as it approached yesterday’s high (which is below larger resistance). Bulls may yet attempt another rally tomorrow, although after today’s close the S&P is scored even between bulls and bears. The MACD and On-Balance-Volume are near term bearish, but stochastics remain firmly in the bulls camp.
The Nasdaq finished just below 4,245 support, but probably not far enough below to consider it a break. While the S&P was the most bullish on today’s action, buyers may find more joy trading the Nasdaq tomorrow.
While bears should keep knocking on the door of the Russell 2000. Today’s close left it near the day’s, and yesterday’s, lows. A test of the 50-day MA would remain the favoured action for Wednesday.
Today’s action did steal some of the bearish momentum which sellers have so far have failed to generate over 2014. Tomorrow is an important day, particularly for the Russell 2000 – losses which take out the March swing low will set up a measured move down. Â Buyers will look to sniff an opportunity in the Nasdaq, helped by strength in the semiconductor index, and the proximity of support
