Minor Losses For Indices Change Little For The Big Picture
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While coming in as a technical distribution day, the general low volume is a sign that Thanksgiving trading has come early. I won't be expecting much until next Monday, but Black Friday is more likely to be bullish.
The Russell 2000 (IWM) experienced the largest loss. The 50-day MA is a potential support area although it may not be needed.
Bears could view today's DOJ in the Nasdaq as a bearish harami cross, one of the most reliable reversal signals. If this was to be true it would need a gap lower to confirm. The good news is that there is plenty of support to lean on with the 20-day MA a probable level to test should weakness emerge.
It's a similar story for the S&P as it returns to a relative outperformance against the Russell 2000. Technicals are net positive and the potential for a bearish harami cross reversal is there as it is for the Nasdaq.
It has been a strong advance from the October low. The attempt at a correction in early November was quickly snuffed out, will now be the time we see this happen?
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