To The Moon

Markets stalling near 20-day MAs

Sellers have near term control of indices with 20-day MAs currently under test. Markets closed today on neutral doji - which gives chance for bulls to put in a low, but a larger pullback would be preferable to firm the strength of June lows. On the bullish side, the setup over the last two days can be considered as bullish-harami-doji - one of the more reliable bullish reversal patterns; a gap higher tomorrow could see a test of August highs before markets reach their next decision point.

 $iShares Russell 2000 ETF(IWM)$

The Russell 2000 is the leading index by relative performance to its peers. However, it's working off a 'sell' in its MACD despite recovering from a 'sell' in On-Balance-Volume. If there is an index to lead a bounce tomorrow, then look to the Russell 2000 to get the party going. As an added kicker, it's holding on to June swing highs as support.

$NASDAQ(.IXIC)$

The Nasdaq isn't performing as strongly as either the Russell 2000 or the S&P, with confirmed 'sell' triggers in both the MACD and On-Balance-Volume. The ADX is also on the verge of a 'sell' trigger with momentum (stochastics) easing out of an overbought state. If bears are to keep control, then this is the index to watch.

$S&P 500(.SPX)$

The S&P is the piggy-in-the-middle index. It might prove to be the tie breaker if the Russell 2000 goes up and the Nasdaq goes down.  The MACD and On-Balance-Volume are on 'sell' triggers and the index slipped into a relative underperformance against the Russell 2000.

With markets trading near their 20-day MAs on neutral doji, they could go either way.  It just so happens that 20-day MAs are caught in the middle of 50-day MAs below and 200-day MAs above; these will be the next tests (and price targets if traders decide to swing trade the break of today's doji).