Solid Buying Kicks Off The Development Of Indices Swing Lows

Image Source: PixabayIt was a good start to the week across all indices as buyers began the day in buoyant mood and didn’t let up all day. If there is a caveat to the buying it was that there was little in the way of a pause or a test of buyer resolve over the course of the day. Volume was down for the Russell 2000 (IWM), although the Nasdaq ($COMPQ) and S&P (SPX) registered as accumulation days.The S&P ($SPX) recovered its 20-day MA with technicals unchanged, but improving.The Nasdaq had the most ground to make up against its 20-day MA but it managed to achieve this goal by the close of business today. Technicals continue to improve although the index is still underperforming relative to the S&P.The Russell 2000 ($IWM) also banked a solid day, edging above its 20-day MA, but on lower buying volume. Technicals remain slightly more bearish than for the Nasdaq or S&P with ‘sell’ triggers in the MACD and On-Balance-Volume, but the index is still outperforming the Nasdaq. There is probably enough momentum here to see a challenge of $205 highs.For tomorrow, we will want to see indices start where they closed and continue to build on their nascent rallies. What we don’t want is to see a pause or neutral candlestick, like a doji, that could attract sellers later in the week.More By This Author:Lows Hold As A Swing Low Takes Shape
Markets Start 2024 Near (All-Time) Highs
Being “Right” But Still Losing…


  • Total Score 0%
User rating: 0.00% ( 0
votes )

Leave a Reply

Your email address will not be published.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