🍎 🍕 Less apples, more pizza 🤔 Have you seen Buffett’s portfolio recently?Explore for Free

Minor Losses Keep Indexes Close to Resistance

Published 21/04/2023, 07:54
US500
-
US2000
-
IXIC
-

There wasn't much room for markets to gain without driving breakouts, so instead, indexes drifted lower without causing too much damage.

The Nasdaq retained 20-day MA support on lighter volume selling. While losses were light, there was enough selling to generate a 'sell' trigger in On-Balance-Volume.

COMPQ Daily Chart

The S&P 500 had been moving higher in a relatively narrow band. Today's loss ended with a neutral doji on higher volume selling. Although technicals are net positive, the index outperforms Russell 2000.

SPX Daily Chart

The Russell 2000 had the quietest day of the indexes. Today's doji wasn't significant selling, and action has been concentrated between 20-day and 200-day MAs.  Stochastics are on the bearish side of the mid-line, although other technicals are positive.

IWM Daily Chart

With indexes near key resistance, it's hard to see markets post gains without marking a significant breakout, so the easy option is for markets to drift sideways. 

Until there is a concerted effort, event trigger, or a catalyst of some form to drive a continuation of the rally, I suspect we will see more days like today. Sell in May and go away may be the summer's slogan. 

Latest comments

Loading next article…
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.