Daily Market Commentary: Further Selling
All markets experienced another round of selling as Europe dominates the headlines. The selling wasn't particularly heavy, but it was damaging in taking indices away from support.
The S&P is tempted by the siren call of the 200-day MA as technicals drift lower. However, relative strength continued to strengthen against the Russell 2000; so what money is flowing into the market is flowing into Large Caps.
The Nasdaq is riding declining support lower, which is cold comfort if you are long. Bullish divergence in MACD histogram offers an inkling a bounce will happen soon. Like the S&P, looks ready to test its 200-day MA.
The Russell 2000 broke support in a worrying shift after 4 days of holding. The 200-day MA isn't far away and there is a good chance a 'bear trap' if tomorrow it can break above today's high.
The only index left clinging to a trade-worthy support level is the semiconductor index. Use a loss of the 200-day MA for stop placement.
For Tuesday, the semiconductor index remains the best opportunity for longs. Shorts have little to work with until there is some form of bounce - preferably to the 20-day MA.
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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 S&P is tempted by the siren call of the 200-day MA as technicals drift lower. However, relative strength continued to strengthen against the Russell 2000; so what money is flowing into the market is flowing into Large Caps.
The Nasdaq is riding declining support lower, which is cold comfort if you are long. Bullish divergence in MACD histogram offers an inkling a bounce will happen soon. Like the S&P, looks ready to test its 200-day MA.
The Russell 2000 broke support in a worrying shift after 4 days of holding. The 200-day MA isn't far away and there is a good chance a 'bear trap' if tomorrow it can break above today's high.
The only index left clinging to a trade-worthy support level is the semiconductor index. Use a loss of the 200-day MA for stop placement.
For Tuesday, the semiconductor index remains the best opportunity for longs. Shorts have little to work with until there is some form of bounce - preferably to the 20-day MA.
-----
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!
