The major indexes did a little bit of the zombie walk this past week, posting higher highs on Monday before selling off hard on Tuesday and Wednesday. The final two days of the week were spent stumbling back to the upside as the NASDAQ Composite Index found support along its 20-dema. Volume was higher on an options expiration day, but below-average levels seen in the Tuesday and Wednesday sell-offs.
The S&P 500 posted an undercut & rally move Thursday after undercutting the early-May low. That took the index up into the 10-dma on Friday on stronger options expiration volume. The S&P has also had two prior two-day sell-offs in what has mostly been a big chop zone over the past month. Some might want to say that the three two-day sell-offs in the pattern form the right sides of a left shoulder, head, and right shoulder.
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