Sellers Return But Damage Is Minimal
Declan Fallon | Apr 22, 2015 12:33AM ET
The specter of Friday's selling was in the air, but when sellers did make an appearance, the net result wasn't too damning.
The S&P is caught in the middle between 2120 resistance and rising trendline support. There was also a relative strength shift away from Large Caps, although this is more bullish for the market as a whole.
The NASDAQ closed with a bearish 'black' candlestick just above 5000 resistance. The gut says this is set to go lower, but it's less than 30 points away from a new high too. Swing traders will enjoy the opportunity.
The Russell 2000 'bull trap' is under pressure, but technicals are shaping up in favour of bears with relative performance shifting towards Tech indices. Holding the channel will be key going forward, but it will have the 50-day MA to work with too.
The NASDAQ 100 reversed off converged resistance from the bearish wedge and February/March highs. Should the index open weaker today it will have an initial target of converged 20-day and 50-day MAs at 4375 and 4386.
For today, bears can look to press yesterday's losses. However, it won't take much for bulls to push to new highs. Shorts may find the best opportunity in Tech indices, the NASDAQ 100 in particular (although I'm already short in this...).
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