Thursday, February 21, 2019

Action Tightens at Resistance

It's all getting very constricted and narrow at resistance but bears haven't been able to break this extended rally. While I have marked nascent potential short positions at such resistance they remain vulnerable to any decent one-day's gain. Ideally, I would like to see indices drift back to their 50-day MAs but nobody seems willing to blink.

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Tuesday, February 19, 2019

Small Gains Continue; S&P Reaches Resistance

Indices continued to post small gains which left the S&P nestled against resistance. I have marked the S&P as a possible short at such resistance as volume was lighter than usual.

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Sunday, February 17, 2019

Russell 2000 Approaches 200-day MA; S&P Breaks 200-day MA

It was another day bulls chalked up a victory and indices posted gains across the board. Some indices did better than others but there is no clear weakness to work off yet.

The S&P was able to break past its 200-day MA on higher volume accumulation. However, it's coming up against declining resistance. The MACD has already cleared comparable resistance with new highs which would suggest the S&P will be able to do likewise. Other technicals are in good shape and only relative performance (vs the Russell 2000) is underperforming.

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Wednesday, February 13, 2019

Small gains keep rally ticking over

Yesterday delivered small gains which kept the rally chugging along but there wasn't much to add on today's action.

Probably the most important action was the break of the 'bull trap' in the Semiconductor Index. The 200-day MA has been comfortably breached and now the index has to work against Fall 2018 supply. This move above the 200-day MA should help the Nasdaq and Nasdaq 100 in their 200-day MA challenges.

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