S&P 500 Tests Key 50 MA Support, Nasdaq Breaks Below It; Chips Face More Declines

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S&P 500 Tests Key 50 MA Support, Nasdaq Breaks Below It; Chips Face More Declines

Not surprisingly, the and took a big hit yesterday. Monday’s weak bounce tapered quickly with the S&P 500 contained by former support, turned resistance.

The index finished the day on its 50-day MA, but if there is to be a bullish stand then I would like to see a spike low with an end-of-day finish back at the 50-day MA.

For today, if there is an intraday move to test the May swing high of 5,342, then it might be a good aggressive buy.

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The Nasdaq cleanly sliced through its 50-day MA, weakening the thesis for a successful 50-day MA support test in the S&P 500, but let’s see there.

There was a new ‘sell’ trigger in On-Balance-Volume to go with the earlier ‘sell’ trigger in ADX and MACD. Intermediate stochastics are not on a ‘sell’, and if we see a price recovery on a test of the 50-midline of said stochastics, then the bullish thesis ******** intact, despite how ugly the chart looks now.

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The () is caught between its surge and broader weakness in the Nasdaq and S&P 500.

The 20-day MA is fast advancing and is near $210 support. I would be happier to see a test of the 20-day MA, and yesterday’s action suggests it will get there. Technicals are net bullish.data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///ywAAAAAAQABAAACAUwAOw==

It was a difficult day for the as it shed nearly 6%, losing not just 50-day MA support, but also breakout support of 5,200. Technicals are net bearish, but not oversold on intermediate-term stochastics.data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///ywAAAAAAQABAAACAUwAOw==

Yesterday’s selling suggests there is another day’s worth in the tank, but watch premarket for leads. If the market opens higher, then look for a bullish harami, or better still, a bullish harami cross.

This is one of the most consistent reversal patterns and should be watched closely in the Semiconductor, Nasdaq, and S&P 500 indexes.

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#Tests #Key #Support #Nasdaq #Breaks #Chips #Face #Declines

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