Markets Attempt A Swing Low

Published 04/08/2022, 02:49 AM
Updated 07/09/2023, 06:31 AM
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It looks like we have completed a zig-zag retracement for indices, with the NASDAQ and Russell 2000 finishing the day with a second doji for the 'zag' to match the intial doji of the 'zig'. There were additional support levels for indices to use too. 

For the NASDAQ, today's 'dragonfly doji' also has the potential to form a bullish harami doji - building off the 20-day and 50-day MAs. There was a 'sell' trigger in relative performance against the NASDAQ, along with 'sell' triggers in the ADX and On-Balance-Volume. 

COMPQ Daily Chart

The S&P had a more bullish finish to the day as it was able to hold its 200-day MA as support, in addition to the 20-day MA at the day's lows.  Technicals remained net bullish, including an improvement in relative index performance. This index is well placed to follow through higher tomorrow. 

SPX Daily Chart

Finally, the Russell 2000, there was also a doji just below its 50-day MA. It's another buying opportunity, although there is a risk that if prices continue to fall tomorrow it will undercut its base and add a large layer of supply overhead. Unlike for the S&P and NASDAQ, the majority of technicals are bearish.

IWM Daily Chart

Indices are well placed to advance and initiate a sequence of higher highs and higher lows from the February-March bottom. It would also mark a solid finish for the week. It's now down to buyers to deliver. 

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