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Riding Support In S&P, But Nasdaq Breaks

Published 05/06/2015, 12:43 AM

Sellers took control of markets with the Nasdaq following prior weakness in the Russell 2000 with a breakdown. This just left the S&P trading at support with very little room for maneuver if bulls don't make an appearance tomorrow. Volume climbed in confirmed distribution and there was a 'sell' trigger in the MACD.

SPX Daily Chart


The Nasdaq was less fortunate with a clean slice through trendline support. There was also a 'sell' trigger in On-Balance-Volume. There is still a chance for bulls to trap shorts tomorrow, but there is work to do for this happen.

Nasdaq Composite Daily Chart


The Russell 2000 had already lost channel support, and it took a swing at a further leg lower on today's loss. Next support is found at 1,206 and 200-day MA.

RUT Daily Chart


Tomorrow could see an acceleration of losses as bears look to crack the S&P. If shorts/sellers fail to do so, then look to the Nasdaq to build a bullish revival.

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