Another day of ugly reversal action; however, all the major indices managed to close above their 50-day simple moving averages once again. Semiconductors and other tech stocks suffered heavy damage; the SMH was down roughly 4% at one point. A trading-range market is developing between SPY 133.5 to 129.80. The market has had two strong bounces over the last couple weeks that have both failed, but there still seems to be some underlying buyers. With a weak close to dampen enthusiasm and lows that continue to hold; the bulls should give it a stronger showing tomorrow.
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