Morning Report – March 20th, 2014
Yesterday’s market shakeout after Janet Yellen’s comments about a potential interest rate increase created while gyrations in the market indexes and change what had looked like a very bullish situation the prior day into a day of uncertainty. At this point, I am labeling this is a shakeout because the NASDAQ composite managed to find support as buyer stepped in and it worked its way back up to 46.68% of its daily range. Had the candle close near the bottom of its daily range, it would have been much more bearish. If there’d been panic selling, we would’ve seen much more volume, but the volume was 8.27% below its 21 day moving average.
Declining issues led advancing issues by a margin of 1.82 to 1, and this comes after a day where we saw a 3 to 1 margin to the upside. This in itself says the selling pressure was not as great as the buying pressure the previous day. The index clearly remains locked in a congestion area and we learned a little about future market direction with yesterday’s price action. Read Full Report