Daily Market Commentary: Sellers Swoop
Supply created by the April-May bull traps came back to haunt buyers on the back of more eurozone woes. Volume climbed to register a distribution day, although for the size of the day's losses it was not excessive.
The S&P marked a second bull trap off 1,343 resistance, falling back to its 50-day MA with former declining resistance coming into play too. A decent opportunity for a long side play tomorrow.
($SPX)
via StockCharts.com
The Nasdaq was pegged by upper resistance from the April-May bull trap. Monday's selling dropped the Nasdaq below 2,836, but unfortunately it's not lingering near any obvious support; the 50-day MA is one or two day's selling away.
($COMPQ)
via StockCharts.com
Pressuring tech indices is expanding weakness in semiconductors. The 50-day MA has played as firm resistance and buyers have only the 20-day MA to look too before there is a push down to lower channel support.
($SOX)
via StockCharts.com
Small Caps never got a chance to challenge the April bull trap. Instead, the index was repelled by 855 resistance. Like the Nasdaq, it has a couple days worth of selling before nearest support of the 50-day MA is tested.
($RUT)
via StockCharts.com
Tomorrow may see consolidation around Monday's low. Markets just sit outside of overbought conditions despite two days of selling. This is likely the start of a more protracted decline before value re-emerges in the market. The S&P offers the best long side opportunity for Tuesday given its position at converged declining resistance and 50-day MA; who wants to catch the knife?
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Zignals Trading Strategy Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.
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The S&P marked a second bull trap off 1,343 resistance, falling back to its 50-day MA with former declining resistance coming into play too. A decent opportunity for a long side play tomorrow.
($SPX)
via StockCharts.com
The Nasdaq was pegged by upper resistance from the April-May bull trap. Monday's selling dropped the Nasdaq below 2,836, but unfortunately it's not lingering near any obvious support; the 50-day MA is one or two day's selling away.
($COMPQ)
via StockCharts.com
Pressuring tech indices is expanding weakness in semiconductors. The 50-day MA has played as firm resistance and buyers have only the 20-day MA to look too before there is a push down to lower channel support.
($SOX)
via StockCharts.com
Small Caps never got a chance to challenge the April bull trap. Instead, the index was repelled by 855 resistance. Like the Nasdaq, it has a couple days worth of selling before nearest support of the 50-day MA is tested.
($RUT)
via StockCharts.com
Tomorrow may see consolidation around Monday's low. Markets just sit outside of overbought conditions despite two days of selling. This is likely the start of a more protracted decline before value re-emerges in the market. The S&P offers the best long side opportunity for Tuesday given its position at converged declining resistance and 50-day MA; who wants to catch the knife?
Follow Me on Twitter
Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Zignals Trading Strategy Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.
Zignals offers a full suite of FREE financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock quote 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.
You can read what others are saying about Zignals on Investimonials.com.
JOIN US TODAY - IT'S FREE!
