S&P Pushes Lower As Russell 2000 Tags 200-Day Moving Average
Declan Fallon | Oct 01, 2021 02:49AM ET
The S&P 500 followed through on its continuation pattern by delivering a solid red candlestick lower. Those big red candlesticks have also come with bearish distribution. Next stop is the 200-day MA on net bearish technicals.
The NASDAQ is also edging towards its 200-day MA on higher volume distribution. With the index closing at its lows over the last few days its likely to keep pushing lower. Watch for a spike low as it gets closer to its 200-day MA.
The Semiconductor Index is supporting the move lower in Tech indices as it too has broken rising trendline support. As with the NASDAQ it's also gearing for a test of the 200-day MA - but is likely to get there first.
The Russell 2000 hit its 200-day MA for a third time in the last two months, but all of this has occurred within its larger trading range. If there is an undercut then next test will be trading range support - opening up the possibility for larger losses.
Today's action has effectively set up for further losses - most likely tomorrow. Larger losses may emerge later but we likely haven't seen the end of the selling yet. The Russell 2000 remains the index of interest as it has shifted sideways for most of 2021 as other indices gained. How it breaks will say much about the long term trends for markets.
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.