Daily Market Commentary: Channel Support Defended
The S&P made a picture perfect test of channel support and the close inside yesterday's real body sets up a possible move to channel resistance.
($SPX)
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The Nasdaq came back to close the gap. With the gap closed the Nasdaq needs to push on, otherwise seller confidence will grow the longer 2,590 plays as resistance.
($COMPQ)
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The Nasdaq 100 offered another possibility (the same is true for the Nasdaq) - a channel breakdown.
($NDX)
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Meanwhile, the semiconductor index is back testing trading range support.
($SOX)
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Bulls will want to press the advantage of the morning recovery. Look for intraday supply around 1,220 with a 1,226 break required to negate the intraday bull trap from yesterday. Let's see how bulls play the channels.
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