Sunday, January 15, 2017

Russell 2000 Comes Back From The Brink

There was no wiggle room for the index heading into Friday as it managed to claw back the 'breakdown'. It went one step better and posted one of the better performances on Friday.  While the index has come back from support, it hasn't yet challenged the consolidation 'bull trap' - but look for this on Monday.




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Thursday, January 12, 2017

Russell 2000 Under Pressure

During early afternoon trading it was looking like the Russell 2000 was going to break support and leave a 'bull trap'.  While the 'bull trap' remains in play the loss of support hasn't been confirmed which would show a reversal. However, this is acting as a lead index and will determine what may come for the Nasdaq and S&P.


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Wednesday, January 11, 2017

Bulls Make Back Early Afternoon Losses

It was another good day for bulls, particularly for the S&P. An acceleration in weakness brought about in late morning action was reversed with steadying buying over the last two hours of trading.

The S&P has been range bound since early December. Today's action didn't change that, but it suggests the breakout - when it comes - will be higher.


The Nasdaq also felt pressure with it own sell off. Volume was down on recent weeks, but it was enough to keep bulls in control.


The Russell 2000 had a quiet day, registering just a 0.05% gain. The best of the news was it not drifting back to support, where the risk of a major breakdown lurks.


For tomorrow, look for bulls to continue their good work.  The Russell 2000 looks least likely to do anything exciting, but the S&P (and Dow) is well positioned for a breakout.

You've now read my opinion, next read Douglas' blog.

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Dr. Declan Fallon is the Senior Market Technician for ChartDNA.com, and Product Development Manager for FirstDerivatives.com. I also trade on eToro and can be copied for free.

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Tuesday, January 10, 2017

Gains Posted But Markets Quiet

There wasn't much to add to yesterday's action.  The S&P closed with an indecisive doji, but given the context it was really a non-day with no advantage to either bulls or bears.


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