In some public posts this week we’ve noted that the stock market remains technically bullish and that the VIX, while rising, has remained contained. Let’s briefly take a look at a few indexes using daily charts, with the caveat that it is FOMC day and that could put some ripples in the market later.
I don’t love the Dow’s MACD, but there is short-term support at 19,800. If it were to drop below the January low and the SMA 50, it would indicate a sharp rise in correction potential. Until then, it’s at support in its uptrend.
S&P 500 is just fine, nestled at lateral support and the EMA 20. The Dec. low and the SMA 50 would be downside parameters to watch here.
Nasdaq 100 has been very strong and worked off a bit of its overbought condition the last couple of days. It’s bullish. I added FANG member GOOGL back again on its drop, in order to test this.
Semiconductor index has been very strong as well. While I am loath to buy a momentum fueled mini mania, I did increase my INTC position on the short-term drop.
Finally, the Russell 2000 has been consolidating its Trumponomic gains. It is holding the SMA 50 so far and as such, remains in its bullish trend. A drop below 1340 would be a parameter to indicate all is not well. Short of that, all is well.