Daily Market Commentary: Semis Rout
Despite Ireland's late attempt to spoil the party it was a reasonably quiet day for the markets - with the exception of the semiconductor index.
The S&P could still be considered at converged support of the declining trendline and 50-day MA, despite the couple point close below the 50-day MA. There was an on-balance-volume 'sell' trigger to boot.
The Nasdaq struggled, not helped by the lack of immediate support. Nearest support zone is converged declining trendline and 50-day MA down at 2,760; a days selloff away.
The Russell 2000 held the losses from the open, closing with a doji. Like the Nasdaq, it's about a days selling away from support. Aggressive buyers off the doji can use a break of Tuesday's lows for a stop.
For tomorrow, look for a little relief rally, unless Italy decides to join Ireland in the Junk pile! However, I suspect most traders will be looking at EURUSD; note break of $1.3962.
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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 could still be considered at converged support of the declining trendline and 50-day MA, despite the couple point close below the 50-day MA. There was an on-balance-volume 'sell' trigger to boot.
The Nasdaq struggled, not helped by the lack of immediate support. Nearest support zone is converged declining trendline and 50-day MA down at 2,760; a days selloff away.
Weakness in Nasdaq was heavily influenced by the selling in the semiconductor index. There was no respite from the selling as the index shed close to 3%, slicing through its 20-day MA straight from the off. The next line of defense is the June reaction low, and if that fails, down to channel support.
For tomorrow, look for a little relief rally, unless Italy decides to join Ireland in the Junk pile! However, I suspect most traders will be looking at EURUSD; note break of $1.3962.
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!
