Sharp Reversals On Economic News

It has been a while since something other than Central Banks have moved the market. This time, it was the turn of old fashioned Durable Goods to upset the party. The loss was big, but it's still noise within the bounds of the 'Santa Rally'.  Consolidation breakouts remain in play, although volume climbed to register distribution.

The S&P crossed below its 50-day MA, but it's a flatlined moving average. Technicals are mixed.

The Nasdaq repeated the action of the S&P. The MACD edged a break of declining resistance, although there was a bearish cross between -DI and +DI.

The Russell 2000 had a relatively quiet day. Selling action in the S&P and Nasdaq didn't really impact on the Russell 2000. This is good news for bulls, even if today didn't look it.  Technicals for this index are all net bullish.

Tomorrow is another day, but at worst the consolidations which had formed since Christmas are negated, but those December 'Santa Rally' support and resistance levels remain (bar some real *heavy* selling/buying).

Disclosure: None.

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