Indices Defend Support As Buyers Step In
Declan Fallon | Mar 18, 2021 01:24AM ET
Buyers stepped in Wednesday at trendline support for the S&P and Russell 2000, and the 50-day MA for the NASDAQ. All gains were on small volume, but enough to keep buyers interested.
The NASDAQ opened at its 50-day MA, with an On-Balance-Volume 'buy' trigger to go with the earlier MACD 'buy.' Only ADX left to turn bullish.
The S&P is riding along its trendline, reversing Tuesday's losses with technicals now net positive. Only relative strength is left to turn bullish. The higher close is enough to register a new all-time closing high, but only just.
The Russell 2000 (via IWM) successfully defended the convergence of breakout support at rising trendline support. Volume was better, enough to register as confirmed accumulation (although overall volume was light). Relative performance remains good as the index maintains its leadership role.
Not a whole lot to add. Yesterday, indices were able to come back off Tueday's day of selling, so buyers have been willing to come in on any weakness. This scenario won't last, but the current pattern has been maintained for a number of months now without any adverse effect, helped by the angle of ascent (around 45 degrees) for many of the indices; not too fast, and not too slow.
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