Wednesday, May 24, 2017

Market Rallies Slow Down

For the fourth day in a row, markets generated gains to leave markets on the verge of new highs - erasing the losses of last week. However, today's gains were small leaving markets vulnerable to attack from shorts.

The Nasdaq and Nasdaq 100 finished with bearish black candlesticks; black candlesticks at swing highs are often associated with market tops. Shorts can look to take advantage with stops above the recent highs with a target of last weeks lows (for starters).


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Monday, May 22, 2017

Gains Push Into Breakdown Gap

While today's gains were modest they were significant in generating clean pushes inside last week's breakdown gaps. This brings indices back to challenge 'bull traps'

The S&P experienced lighter volume trading as On-Balance-Volume moved to a 'buy' trigger. Today's action opens up for a challenge of 2,405, although shorts may see this as opportunity to go aggressive with a tight stop once markets makes all-time highs.


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Sunday, May 21, 2017

Relief Rally Approaches Resistance

Wednesday's gap created a significant reversal, stalling the mini-rallies kicked off in April. Thursday and Friday generated some come back against last week's loss, bringing many of the markets back to the highs of the gap down.

The S&P is in a position where shorts may look to attack the gap. Friday's spike high put itself inside the gap, recovering the 50-day MA in the process. This gain was supported by a 'buy' trigger in On-Balance-Volume. While shorts might have the better risk:reward option, a move above 2,389 opens up for a retest of 2,405.


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Wednesday, May 17, 2017

...And Then Things Went Pear Shaped

After days of steady gains, it was surprising to see the level of selling on show today; the last day like today in the markets was last December. How today plays out in the long term is still up for grabs as key trading ranges haven't been breached. Shorts will be watching for opportunities, but what followed last December was another kick start for the rally - bulls have a reason for optimism.

The biggest reversal was in the Semiconductor Index. Yesterday's 1.5% gain was whipped by a 4.4% loss. The attempt to break out of the rising channel was snapped away, putting the breakout gap from last week under pressure.


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