Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Volume Selling Picks Up As Prices Hold

Published 03/01/2019, 12:40 AM
Updated 07/09/2023, 06:31 AM

While sellers ticked up their activity there were enough buyers to keep prices stabilized, although supporting indicators have started to slowly rollover. The one exception was the Semiconductor Index as it started the day at channel support and rallied higher.

While the Semiconductor Index rallied off channel support it was left with a 'sell' trigger in the MACD and CCI. Price action is dominant so I have marked a 'buy' trigger at support but use a loss of the channel line as support.

SOX Daily Chart
The S&P remained glued to resistance after a tentative breakout earlier in the week struggled to gain traction but the opportunity for some follow through remains. Unlike for Tech averages, volume was lighter.

SPX Daily Chart

The Nasdaq remained ahead of its 200-day MA with higher volume selling marking distribution - although the lack of any real price loss suggests churning, while itself is bearish, is not as damaging as straight distribution selling, particularly as the Nasdaq is above its 200-day MA.

COMPQ Daily Chart

The Russell 2000 is lurking near its 200-day MA, but despite spiking above-then-below the moving average it has done well to stick around. As with other indices it has switched to a MACD trigger 'sell' and ROC has remained disappointingly on the bearish side of the fence even with a 25%+ gain off lows.

Russell 2000

The Dow Jones Index has moved well beyond its 200-day MA and if sellers make an appearance it has the most wiggle room to defend this moving average. It too has a MACD trigger 'sell' to contend with too.

Dow Jones Index

For tomorrow, look for bulls to take the Semiconductor higher off channel support and for gains in the Nasdaq and Nasdaq 100. If bears maintain control after the first 30 minutes of trading then look to the Russell 2000 to pull away from its 200-day MA.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.