Market Closes Up But Weak

On Tuesday, The market opened up, but it could not hold the gains. The market pulled back in the morning session, then continued falling and did not find support until the noon hour. The lows for all three major indices held above Monday's lows, and price climb out of the cellar in the afternoon session.

The Nasdaq Composite gained +7 points (+0.19%) and closed above its 50 day EMA. The S&P 500 rose +8 points (+0.44%) and closed above its 10 SMA. The Dow also closed above its 10 SMA, climbing +91 points (+0.56%).

While the market ended its 2-day slide, the Nasdaq did not close above the last support level (now resistance) at 4,240. In addition, all three indices closed inside Monday's range, so today did not provide an indication of a change of direction.

The short-term bias is still down until the market moves higher on stronger volume. On the other hand, another down day on stronger volume could shift the market into correction mode.