Daily Market Commentary: Semiconductors Post New Swing Low
In an omen as to what may follow for the Nasdaq there was a new swing low in the Semiconductor Index. Monday's gap down of just over 1% undercut the March swing low and left it with a 'Death Cross', but it finished above important support of 395. Stochastics are oversold which sets up nicely for a bounce tomorrow, with a target of the 20-day MA.
The Nasdaq was left with a gap below the 50-day MA on lighter volume, but it remains 70 points above 2,900. Neither is it oversold. But it also reverses the breakout of 3,000.
The S&P is holding above the April swing low and is not oversold either.
While the Russell 2000 is caught somewhere in the middle.
With the exception of the Semiconductor index there is probably another day's selling in the tank before markets reached an oversold - and possible bounce point.
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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 Nasdaq was left with a gap below the 50-day MA on lighter volume, but it remains 70 points above 2,900. Neither is it oversold. But it also reverses the breakout of 3,000.
The S&P is holding above the April swing low and is not oversold either.
While the Russell 2000 is caught somewhere in the middle.
With the exception of the Semiconductor index there is probably another day's selling in the tank before markets reached an oversold - and possible bounce point.
---
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!
