With some indices at resistance today’s selling was not a surprise. Hardest hit by the selling was the Russell 2000, it lost over 2% as it reversed off the March swing high. Volume climbed in confirmed distribution, but aside from the relative strength loss against the Nasdaq, other technicals were positive. While the selling was heaviest in this index it didn’t breacelletnt support.
The S&P posted a small loss, although volume rose in confirmed distribution. Resistance at the February gap along with the 200-day MA is in play but the trend remains bullish.
The Nasdaq has already posted new all-time highs as it looks to consolidate its gain. The gain came with a new ‘buy’ trigger in relative performance vs the S&P. Technicals are not showing any technical weakness.
Profit taking was the key action on the day and there was no lasting daamage done to the indices.
You’ve now read my opinion, next read Douglas’ blog.
Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.
Investments are held in a pension fund on a buy-and-hold strategy.
SOURCE: Fallon Financial Commentary – Read entire story here.