Solid Defense On Friday Helped Indices Deflect Meta Platform Losses
Declan Fallon | Feb 07, 2022 12:03AM ET
Trading volume wasn't that high on Friday, but end-of-week buying helped prevent an acceleration of losses (and the fear) generated by Meta Platforms' (NASDAQ:FB) loss in ad revenue.
The January swing low is looking more solid in the NASDAQ. There is a bit of a mini-support level around 13,885 which we will want to see hold on an end-of-day close basis (intraday violations are okay). We still have the MACD trigger and On-Balance-Volume 'buy.'
The S&P was able to regain 200-day MA support as part of its move from its swing low. This is now the support level which needs to hold if it's to challenge the overhead supply generated by November-December training.
The Russell 2000 (via IWM) is back at its measured move support of $195 (IWM). This stability is backed by a new MACD trigger 'buy.'
We have the foundations for a good week but there will be considerable overhead supply to overcome from the winter sell-off. Key will be for the swing low to hold, even if this only means indices inch higher.
Things are mildly bullish; aggressive traders might take a long pop with a stop off Friday's lows—with the November swing the initial upside price target.
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