Stock Market Commentary: Semiconductors Break in Trouble?
A late posting on this, but yesterday's downward action was not surprising given a mix of profit taking and fresh short positions prevented any further push higher. The semiconductor index took to the brunt of the selling and its new-high breakout is under threat with its close at the low end of a thick paint-brush-support level. In all likelihood the index will drop back to former triangle resistance-turned support.
For other indices there were no real surprises. The S&P traded an inside day, potentially produing a bearish harami with selling volume trumping the prior day's buying. A move back to test support of what is a very narrow and acute angled channel would appear to be the setup for Thursday - although if the rally is to succeed in the long term it will need a channel less steep than the current one.
The breakout stock - well ETF - for today is $EUO; given the turmoil in the Euro it's perhaps a better play than some of the stock picks in this extended market.
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For other indices there were no real surprises. The S&P traded an inside day, potentially produing a bearish harami with selling volume trumping the prior day's buying. A move back to test support of what is a very narrow and acute angled channel would appear to be the setup for Thursday - although if the rally is to succeed in the long term it will need a channel less steep than the current one.
The breakout stock - well ETF - for today is $EUO; given the turmoil in the Euro it's perhaps a better play than some of the stock picks in this extended market.
Follow Me on Twitter
Build a Trading Strategy in Zignals; Read how and earn real money (once out of Beta) in this PDF.
Dr. Declan Fallon, Senior Market Technician for Zignals.com, offers a range of stock trading strategies for global markets under the user id: ‘Fallond’, ‘ETFTrader’ and ‘Z_Strategy’ available through the latest rich internet application for finance, the Zignals Dashboard or the Zignals Trading Strategy MarketPlace.
Zignals offers a full suite of financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock list watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own trading system and sell your trading strategy in our MarketPlace to earn real cash. Read what others are saying about Zignals on Investimonials.com.
JOIN US TODAY - IT'S FREE!
