Small Caps Fall Back To Converged Moving Averages

There wasn't a whole lot to today's action despite the damage done to my monitored Shutterstock (SSTK) following disappointing earnings. The Small Caps index fell back into converged 20-day, 50-day, and 200-day MA.

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The S&P lost a little ground on lighter volume but the minor gains of the past few weeks have been using the 20-day MA to work support. Look for a repeat as occurred in the latter part of March.

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While the S&P could use the 20-day MA to mount a demand bounce, the Nasdaq has a little more room to maneuver before an equivalent test can be mounted. Technicals are all net bullish.

While the Nasdaq is holding ground, the Semiconductor Index lost nearly 2%; it remains well above its moving averages. Despite this, a test of the 20-day MA would be sufficient to be very damaging to supporting Tech indices, although it would help consolidated the advance off 1,293. Look for some solo downside to work as a test of the 20-day MA.

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For tomorrow, attention can remain on the Semiconductor Index and supported Nasdaq and Nasdaq 100. Expectations are for more downside but there is plenty of room for a surprise.