Daily Market Commentary: Techs Hit Hardest
It was a relatively mute day for Large and Small Cap indices, but Technology wasn't able to escape the glare of traders. China troubles brought the focus firmly on the Nasdaq and Nasdaq 100.
The heavier volume selling ranked as distribution for the Nasdaq, but buyers were able to do enough by the close to preserve channel support.
($COMPQ)
via StockCharts.com
The selling in the Nasdaq 100 resulted in a widening of support. The selling dropped it below the 50-day MA but not enough to take it outside of the consolidation. However, there is a MACD trigger 'sell' with on-balance-volume close to a 'sell' trigger too.
($NDX)
via StockCharts.com
On the plus side, the semiconductor index took a hit, but it has managed to keep itself above former consolidation resistance-turned-support.
($SOX)
via StockCharts.com
The S&P is wavering around consolidation support. Today's upper intraday range spike reflects the overhead supply. In all likelihood the S&P will take a swing lower when interest in the Nasdaq abates.
($SPX)
via StockCharts.com
Finally, the Russell 2000 finished the day just above 650. The potential of a 'bear trap' remains for this index but there can be no losses tomorrow.
($RUT)
via StockCharts.com
As for tomorrow? There is reason for optimism with the last hour of buying pushing indices above intraday resistance. But there is significant overhead supply to consume, particularly for the S&P. Buyer beware.
As for sectors, Energy and Semiconductors are favored for bulls.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.
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The heavier volume selling ranked as distribution for the Nasdaq, but buyers were able to do enough by the close to preserve channel support.
($COMPQ)
via StockCharts.com
The selling in the Nasdaq 100 resulted in a widening of support. The selling dropped it below the 50-day MA but not enough to take it outside of the consolidation. However, there is a MACD trigger 'sell' with on-balance-volume close to a 'sell' trigger too.
($NDX)
via StockCharts.com
On the plus side, the semiconductor index took a hit, but it has managed to keep itself above former consolidation resistance-turned-support.
($SOX)
via StockCharts.com
The S&P is wavering around consolidation support. Today's upper intraday range spike reflects the overhead supply. In all likelihood the S&P will take a swing lower when interest in the Nasdaq abates.
($SPX)
via StockCharts.com
Finally, the Russell 2000 finished the day just above 650. The potential of a 'bear trap' remains for this index but there can be no losses tomorrow.
($RUT)
via StockCharts.com
As for tomorrow? There is reason for optimism with the last hour of buying pushing indices above intraday resistance. But there is significant overhead supply to consume, particularly for the S&P. Buyer beware.
As for sectors, Energy and Semiconductors are favored for bulls.
----
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 Trading Strategy Marketplace 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 strategy and sell it in the MarketPlace to earn real cash.
You can read what others are saying about Zignals on Investimonials.com.
JOIN ZIGNALS TODAY - IT'S FREE!
