While the NASDAQ looks poorer due to its major overweight with Apple, the S&P 500 continues to leave us in limbo. Despite the three week bounce it has yet to create a "higher high" versus the last high about a month ago. It also is facing a downward sloping 50 day moving average which thus far has been a ceiling. Seeing both of those change, with the former being the first step would open the door to a change in intermediate term direction. Time is of the essence as the 200 day is also beginning to flatten out – seeing this longer term moving average flatten and potentially slope down concurrent with a downward sloping 50 day? That would not be a positive. This is what is happening in the NASDAQ. This is what the bears have in their camp technically at this time.
For the bulls, while there has not been a higher high there also has not been a lower low – each time an intraday selloff has happened and the index looked poised to rollover buyers have stepped in. So we also have a series of "higher lows". Something has to give, and soon as there is now a pattern of lower highs and lower lows in place.
Any securities mentioned on this page are not held by the author in his personal portfolio.