The Nasdaq Composite joined the S&P 500 on a buy signal after last Wednesday’s follow-through day (FTD) and close above the 20-day EMA. The Nasdaq still has quite a bit of resistance to clear around $13,600, but the technical picture has improved.
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Our timing model is on a buy signal in the Nasdaq Composite after Wednesday’s follow-through day (FTD). The Nasdaq gained +1.5% on a pick-up in volume while reclaiming the 20-day EMA.
The S&P 500 formed a tight-ranged inside day on Tuesday, which sets the daily chart up for a potential breakout if the price can clear Tuesday’s high and hold.
We are monitoring $X for an entry point after Monday’s breakout. Let’s see how the price reacts during the next few days.
The S&P 500 continues to lead with the price reclaiming the rising 20-day EMA on a follow-through day.
Other names to monitor for an entry over Thursday’s high $MTDR $AMG $CPE. Stops should be low of trigger day.
The Nasdaq Composite closed below support at 13,000 with a second day in a row of heavy volume distribution. Conditions appear to be deteriorating further, as stocks on our watchlist that were showing relative strength are now joining the selloff.
Despite the recent weakness, the Nasdaq is still above the March low and only needs one follow-through day to produce a buy signal.
The S&P 500 remains above the 20-day EMA, but leadership within the index is selling off. $XLF (financials) and $XLE (energy) are below the 20-day EMA and no longer in trend mode.
The Nasdaq Composite rallied 1.2% on lighter volume and sold off into the close after stalling at the 50-day MA. The Nasdaq is vulnerable to further selling if Monday’s low does not hold. An immediate move back through Monday’s high would be a positive.
Note how the trend has changed on the hourly chart below shifting from higher highs and lows above the 20ema to lower highs and lows below the 20ema. Bears are in control on the hourly, as the price is in a downtrend with a 200ma that is sloping lower.
