Minor Losses Keep Indexes Close to Resistance
2023.04.21 03:34
There wasn’t much room for markets to gain without driving breakouts, so instead, indexes drifted lower without causing too much damage.
The 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 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 .
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.
