Daily Market Commentary: S&P Breakout?
The S&P may have finally cleared resistance, although it was not a resounding breakout. The index edged above declining resistance, but remained below its 50-day MA. There was also a MACD trigger 'buy' to go with the gain. It's a possible long side trade with a stop below 1,601.
The Russell 2000 did not had the best of the day's action, but it did play in line with bullish expectations. The morning gap did not lead to expanding weakness, and the index was able to finish against channel resistance. The net result is bullish and favours a channel breakout Friday.
The Nasdaq had the best of the action. It maintained 50-day MA support and has only former channel resistance to negotiate (with stronger support below). It would be great if the index could post one more day of gain to take it into a zone with limited overhead resistance.
The Nasdaq 100 had the best of the day's action, but finished just below its 50-day MA. However, there is room to wedge resistance, MACD trigger 'buy' and On-Balance-Volume 'buy' for bulls to work with.
Bulls are well placed to advance Friday: despite today's gap down markets were able to resist the action of sellers. Holiday trading may bias the move as volume will likely be light (despite the employment data). Monday will be a better measure of bullish strength.
All Contributions Welcome - Thank You!
Follow Me on Twitter
Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com.
You can read what others are saying about Zignals on Investimonials.com.
JOIN ZIGNALS TODAY - IT'S FREE!
The Russell 2000 did not had the best of the day's action, but it did play in line with bullish expectations. The morning gap did not lead to expanding weakness, and the index was able to finish against channel resistance. The net result is bullish and favours a channel breakout Friday.
The Nasdaq had the best of the action. It maintained 50-day MA support and has only former channel resistance to negotiate (with stronger support below). It would be great if the index could post one more day of gain to take it into a zone with limited overhead resistance.
The Nasdaq 100 had the best of the day's action, but finished just below its 50-day MA. However, there is room to wedge resistance, MACD trigger 'buy' and On-Balance-Volume 'buy' for bulls to work with.
Bulls are well placed to advance Friday: despite today's gap down markets were able to resist the action of sellers. Holiday trading may bias the move as volume will likely be light (despite the employment data). Monday will be a better measure of bullish strength.
All Contributions Welcome - Thank You!
Follow Me on Twitter
Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com.
You can read what others are saying about Zignals on Investimonials.com.
JOIN ZIGNALS TODAY - IT'S FREE!
