Mixed Bag for Stock Market on Monday
A mixed bag for the indices as it was left to the Russell 2000 to try and extract some positives on the day.
The Russell 2000 closed the day with a bullish hammer on support of the 20-day and 50-day MAs. The ‘hammer’ almost game in as a dragonfly doji or indeed, a bullish harami cross. Again, we have to factor that this action come in the middle of a trading range, so it may turn out to be nothing more than noise. Today’s gain wasn’t enough to stop a MACD trigger ‘sell’.
The S&P was able to succuessfully test broadening wedge support, albeit on an indecisive doji (although it too could be a bullish harami doji). Wedge support lies just above its 50-day MA, so there is a second level of support there should it be needed. Technicals are negative with the exception of momentum (stochastics).
The Nasdaq tagged its 20-day MA as it didn’t enjoy the same draw as the Russell 2000 or like the S&P, by finishing on a more bullish candlestick. There was a MACD trigger ‘sell’ to go with the current ‘sell’ trigger in ADX. On-Balance-Volume and Stochastics are positive.