As mentioned in this weekend’s outlook, the ValueLine Arithmetic Index (VLE) is at many support angles. Today’s move broke those angles but a quick recovery would negate the move. Price finished down 0.9% but near the top of the daily range. I would call today a wash and see what happens tomorrow. Remember, it isn’t where they open ‘em – it’s where they close ‘em. Price also closed below the 50 day moving average which will be bearish if there is continuation of the downside move tomorrow.
The Nasdaq Composite bounced off the 50dma today. The SPX and INDU both finished up for the day. Today was the first trading day after day 120 from the March low. Maybe today was a cycle reflex reaction. Maybe the start of something more. Tomorrows close should tell us more.
Charts courtesy of Stockcharts.com
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