Nasdaq, Russell 2000, S&P 500 Remain Above Support: What Lies Ahead?
2023.08.07 03:55
Markets finished down on Friday, registering distribution for the () and , but not for the . From a support perspective, there are undercuts of the 20-day MAs for the S&P 500 and Nasdaq, with the Nasdaq finishing on its 50-day MA.
COMPQ Daily Chart
While the S&P 500 has drifted below its 20-day MA, it hasn’t yet undercut breakout support of 4,450 or got to its 50-day MA at 4,406. So while last week’s headlines may have pointed to troubles in the market, we haven’t seen any significant loss in support. There are technical ‘sell’ signals in the MACD, On-Balance-Volume, and ADX.
SPX Daily Chart
The Russell 2000 ($IWM) finished at its 20-day MA and is still inside the rising channel. Technicals have moved more bearish with the MACD, On-Balance-Volume, and ADX net negative, with only momentum on the bullish side of the fence.
IWM Daily Chart
While markets had a somewhat disappointing close to the week, indexes remain inside rising channels and their designated trailing support. As long as these upward trends remain, what happens between channel support and resistance is of little consequence.
