Inside Day Keeps Equities Open; Watch For Follow-Through Selling
Declan Fallon | Apr 01, 2015 05:31AM ET
Large and Small Caps traded inside Monday's range yesterday, closing lower against Monday's higher close. While Monday's buying hasn't been totally eliminated, it will have put a dent in bullish confidence. Watch for follow through selling today.
While the S&P closed above the 20-day and 50-day MA on Monday, yesterday it closed below each of these MAs. Technicals only require a stochastic drop below the bullish mid line to turn net bearish. Relative performance against the Russell 2000 also accelerated downward.
The Russell 2000 closed with a bearish harami doji, and as a result it's struggling to negate the 'bull trap.' Of the indices, Small Caps remains strongest relative to the Large Caps and Tech indices.
The NASDAQ pushed itself into Monday's gap, opening up the possibility for a retest of the double top neckline. Volume climbed to register a distribution day.
The Semiconductor Index previously confirmed a trendline breakdown, but has since rallied back to the trendline and prior resistance at 700 in a possible shorting opportunity. A push below the 50-day MA would probably confirm.
Today is likely open to additional losses with the March swing low the target. It may be more difficult for bulls to stage a return to Monday's highs.
Get The News You Want
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.