The Gilmo Report

February 9, 2020

February 8, 2020

The market wedged four days of sharp upside in between two Friday sell-offs by selling off at the end of the week. The NASDAQ Composite Index, the leading major market index, is following up Wednesday’s higher-volume stall and churn with a small roll off the peak on Friday on lighter volume. From here, I would not be surprised to see at least a test of the 10-dma/20-dema confluence.

 

 

The S&P 500 Index, almost in lockstep with the Dow, gave up Thursday’s new highs, which occurred on lighter volume, on Friday. Volume was even lighter on Friday, but the double-top position here from a move that was straight-up-from-the-bottom in four days looks vulnerable to at least a retest of the 10-dma.

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