There was to be no reprieve for buyers on Friday. In the past, buyers have managed to step in to provide a bit of gloss on a bad week to give bulls some optimism for Monday, but there was no such reprieve at the end of last week.
But as I was saying about strong days in a trading range—the same applies for weak days too. The (via ) gave up over 1% in a move which undid Thursday’s neutral doji, but with this occurring inside the trading range its damage is not as significant. The 200-day MA is fast approaching, so this might be the next test.
IWM Daily Chart
losses dropped the index to its 20-day MA, but breakout support near 14,200—down where the first Fiboanacci level is—remains the most likely area to see a test before the month is out. We have a MACD trigger ‘sell’ to go with a new ‘sell’ trigger in On-Balance-Volume.
COMPQ Daily Chart
The held its gains better and has yet to test its 20-day MA. Friday’s selling ranked as distribution and came with a ‘sell’ trigger in the MACD, but it has the most wiggle room to work with.
SPX Daily Chart
Heading into this week we want to see how indices react to Friday’s selling and if there is any hangover from it. The #stockbreakout scan was very poor as there were only penny stocks on the list—a first for this scan. Even if the selling continues, it’s going to be a while before key support breaks.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
