It was a reasonably good day for markets Thursday. Buyers were able to defend 20-day and/or 50-day moving averages, in some cases with higher volume.
The S&P finished with a bullish hammer on its 20-day MA, although the lack of oversold stochastics weakens the reversal potential of this candlestick. The low of the day almost back tested former channel resistance (turned support). As a sidenote, there was a ‘buy’ trigger for on-balance-volume.
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The Nasdaq defended its 20-day MA as the MACD switched to a ‘sell’ trigger.
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The Percentage of Nasdaq Stocks above the 50-day MA also turned to the “Dark Side” as technicals finished net bearish. This will increase selling pressure in the parent index.
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The Russell 2000 was able to defend its 50-day MA and finished the day at the day’s high.
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While the Dow spiked low at its 50-day MA, but like for the S&P, momentum wasn’t oversold. Volume climbed to register an accumulation day. Can it build on this with another attempt at 12,400 resistance? This would look to be it’s best opportunity to do so.
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The Nasdaq 100 also held its 20-day MA, but saw ‘sell’ triggers for the MACD and on-balance-volume.
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So for Friday, look to the Dow and Russell 2000 to press their advantage. Stops can go on a loss of Thursday’s lows.
