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Bulls Have Yet To Crack: Nasdaq 100 Outperforms

Published 08/07/2014, 12:40 AM

There is still a net decline in lead markets, but the crash-and-burn style headlines have yet to crack the resolve of bulls.

The Nasdaq 100 found support at its 50-day MA, which itself is just above channel support. As the index is outperforming the others it's the one most attractive for bulls looking at the 'easy play'; stops on a close below channel support.

NDX Daily Chart
 
The Dow hasn't yet tested the 200-day MA, but buyers may jump on the opportunity to do so before the test occurs. Stochastics are oversold, but the MACD is some distance from a 'buy' trigger.
INDU Daily Chart
 
The Russell 2000 had the most bullish action as value buyers look to take advantage. The Russell 2000 was hardest hit in recent weeks, so the short term play has been to chase the Small Caps bounce.  This rally would likely hit supply on a tag of the 20-day MA. There is also an argument to be made of it having hit channel resistance, and the next move is the one down to the May swing low.
RUT Daily Chart
 
The NASDAQ closed on trading range support after a weak open. Bulls have another opportunity to make a run on 4,485 using a loss of 4,325 as the stop.
COMPQ Daily Chart
 
Tomorrow is another chance for bulls to follow through on what they failed to do Tuesday.

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