Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Indices Bounce Off Support On Light Volume

By Declan FallonStock MarketsJul 22, 2021 12:31AM ET
www.investing.com/analysis/indices-bounce-off-support-on-light-volume-200592873
Indices Bounce Off Support On Light Volume
By Declan Fallon   |  Jul 22, 2021 12:31AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Monday's confluence of support tests was going to bring a reaction and a reaction indeed occurred. Wednesday marked the second day of buying, but volume for yesterday was down on Tuesday's volume and indices will soon find themselves testing the resolve of buyers of the July high—will supply / sellers return?

For the NASDAQ, yesterday's buying was sufficient to regain its 20-day MA with new 'buy' triggers for On-Balance-Volume and ADX. 

COMPQ Daily Chart
COMPQ Daily Chart

The S&P also saw a fresh On-Balance-Volume 'buy' to go with the successful test of the 50-day MA and return close above its 20-day MA. Large Caps are outperforming Small Caps, although Small Caps are making up ground against them.

SPX Daily Chart
SPX Daily Chart

Speaking of Small Caps, the Russell 2000 (via (NYSE:IWM) bounced off channel support to again sit in the middle of its trading range.  Buying volume was light and the first point of call will be flat-lined resistance of its 20-day and 50-day MAs.  However, the trading range remains dominant—so support and resistance is all that matters.

IWM Daily Chart
IWM Daily Chart

For the remainder of the week we need to see how supply plays out for the NASDAQ and S&P as they approach previous highs. For the Russell 2000, we need to see whether support or resistance are tested again.  The 200-day MA is also a potential factor for the latter index. 

Indices Bounce Off Support On Light Volume
 

Related Articles

Indices Bounce Off Support On Light Volume

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Kaveh Sun
Kaveh Sun Jul 22, 2021 1:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I trade spy n large caps. For them summer volume is always light. There is no issue.
Usman Bacha
Usman Bacha Jul 22, 2021 12:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

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.
Continue with Google
or
Sign up with Email