NASDAQ Spends Another Day on the Sidelines on Wednesday

The index which looked ready to the pop spent another day on the sidelines.


By Dr. Declan Fallon

There is little room for maneuver for either side so if the Nasdaq 100 doesn’t pop tomorrow it’s hard to know when it will. Volume climbed in accumulation and the MACD triggered a new ‘buy’.

The S&P (NYSEARCA:SPY) came very close to tagging channel resistance and today’s action came as close as to registering a channel hit. Technicals are healthy although a volume was a little light.

The Russell 2000(NYSEARCA:IWM) lost a little ground but this was to be expected given prior gains. Look for more of the same.

The one index is heading towards resistance is the relative relationship between Consumer Staples (NYSEARCA:XLP) and Consumer Discretionary (NYSEARCA:XLY). Profit takers take note, now is the time to take some money off the table.

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For tomorrow, the index to watch is the Nasdaq 100 but the S&P may be one for which taking some money off the table looks the more prudent action.