Not a Decisive Victory for Bulls
It wasn’t a decisive victory for bulls, but at least buyers were able to push markets into a higher close.
For some markets, the end result was still indecision as to whether this marks a potential swing low. And in all markets, volume was lighter than yesterday.
The Russell 2000 (NYSEARCA:IWM) was the index which had taken the biggest relative loss, and consequently, had the most neutral finish with a wide-range day doji. There was a small uptick in technical strength, with the exception of relative performance against the Nasdaq (NYSEARCA:QQQ)(and S&P(NYSEARCA:SPY)), which ticked lower.
The S&P had the best return on the day, gaining nearly 1%. Yesterday’s spike low will now mark a buying opportunity on weakness (at least until the lows are taken out).
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The Nasdaq too finished with doji (like the Russell 2000), although it did close with a 1% gain. Technicals show modest uptick, but nothing to get too excited about.
The Percentage of Nasdaq Stocks above the 50-day MA has reached August swing lows, watch for a positive divergence with a higher low in the breadth metric and equal or lower low in the Nasdaq.
Nasdaq Bullish Percents are also close to August/September lows and a good chance a key low is near.
Tomorrow has a chance to build on today’s gain, but bulls will want to see what happens when sellers return. Watch breadth metrics closely, these will give the best confirmation if a swing low is in play.
