Thursday, October 30, 2014
Posted by Declan Fallon at 10:44 PM
Wednesday, October 29, 2014
The S&P has a resistance level at 1,987 based on the July high with supply kicking in around September congestion. This may evolve into a bearish head-and-shoulder reversal: for this to happen, look for a move back to 1,904 (August swing low) without a close above 1,987. Technicals are bullish, along with the bullish trend in the 200-day MA, so a head-and-shoulder reversal would run against the technical picture.
Meanwhile, the Russell 2000 is trading around its 200-day MA. Given the relative leadership of this index, and the fact other indices have breezed past their respective 200-day MAs, I wouldn't look for the Russell 2000 to linger here for too long as it continues its rally. However, bears would win on an swift undercut of the 50-day MA.
Shorts may be able to get some joy from tomorrow's open. Indices are trading near resistance levels which traditionally would offer bears something. However, the rally from October's lows hasn't given bears many opportunities to attack, and tomorrow could see this trend continue. The first hour of trading might give some indication as to what may follow: a flat to soft open which fails to spark buying as the morning moves on could see some drift in the afternoon, and a chance for shorts to build their positions.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com, and Product Development Manager for ActivateClients.com. You can read what others are saying about Zignals on Investimonials.com.
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Posted by Declan Fallon at 10:21 PM
Tuesday, October 28, 2014
Posted by Declan Fallon at 10:15 PM
Thursday, October 23, 2014
On the breakout front there was the S&P. Yesterday's selling didn't return below support and today put some distance on it. The 50-day MA may play as resistance tomorrow, but given it has flat-lined it may not play as big a role in this regard.
Posted by Declan Fallon at 9:43 PM
Wednesday, October 22, 2014
The S&P finished with a 'bearish cloud cover,' but it did manage to hold declining resistance turned support. The 20-day MA has also entered the fray as an area for bears to work. But this wasn't the most bearish of the indices, and today's finish actually gives bulls a long play tomorrow (for a bounce off support). Technicals also suggest a bounce.
Posted by Declan Fallon at 11:05 PM
Tuesday, October 21, 2014
The S&P was able to break declining resistance and close above its 20-day MA. Volume climbed to register accumulation, although overall volume was well down on earlier selling. Bulls would probably welcome some tight action near today's highs to help digest these gains. Today didn't give any indication of a bear attack on the 20-day MA.
Posted by Declan Fallon at 11:16 PM
Monday, October 20, 2014
The semiconductor index didn't deliver on its island reversal, but it may yet do so tomorrow. Those who bought today's open will be sitting pretty. What may contain bullish enthusiasm is the presence of overhead resistance at the 200-day and/or 20-day MA, but I still like this for an opening upside gap.
Posted by Declan Fallon at 10:14 PM
In the case of the Nasdaq, the blocker was the 200-day MA. Friday's high tagged the 200-day MA before weakening - although there was a bit of a recovery into the close. The index is no longer oversold, giving bears an opportunity to turn the screw again. However, a close above the 200-day MA would give bulls confidence that last week was a low of note.
Posted by Declan Fallon at 10:58 AM