Bulls Continue To Defend Recent Swing Lows
Declan Fallon | Apr 01, 2015 11:54PM ET
Yesterday's losses took indices to test March lows before buyers stepped in to bring things back by the close.
For the NASDAQ, bulls came in at the 50-day MA, although yesterday's action registered as higher volume distribution.
The S&P didn't quite make it to the more significant March low, instead buyers stepped up on the test of last week's swing low. However, technicals returned to net bearishness, with on-balance-volume trending lower across the March double top; whatever late day buying there was, it was outgunned by the selling trend.
The Russell 2000 had the best of the day's action, finishing with a bullish doji which bounced off the 20-day MA. It also defended support at 1,243.
The NASDAQ 100 ranks as a rising wedge breakdown, with it sitting just above a thick band of support around 4,300. A solid day's decline would confirm a break and open up the 200-day MA as a target.
Fueling weakness in the NASDAQ is the bearish breakdown in the Semiconductor Index. It has already confirmed a double top on the loss of the 695 neckline. It too looks destined to test the 200-day MA.
Get The News You Want
For today, with the shortened week and job data due on Friday, yesterday's weakness may flush itself out. Given the Semiconductor index has already confirmed a double top, it's hard to see other indices not doing likewise.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.