Daily Market Commentary: Bearish Inverse Hammer for S&P

Another day of relatively modest action, although the S&P did finish with a bearish inverse hammer which may lead to further weakness tomorrow. A retest of 1,987 would still honor the trading range delivering a down day, but keeping the larger bullish picture intact.


The Nasdaq closed the day with a bearish engulfing pattern.  Today's close leaves room for a larger move down, with the 20-day MA the most likely target.


The semiconductor index didn't expand on yesterday's bearish engulfing pattern, but the inside day is a swing trade opportunity: trade break of high/lows - stop on the flip side.


Like the Nasdaq, the Russell 2000 finished with a bearish engulfing pattern, although the downside target is nearby channel support.


Finally, the Dow closed with a 'gravestone doji' as it failed to close above 17,100. There is a potential double top despite the 'V-recovery'.


Tomorrow is best set up for bears to follow through on indices' bearish engulfing patterns. More flexible traders can look to swing trade the semiconductor index; long may also find some joy here.

---

Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.

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!

Popular posts from this blog

Nasdaq primed for breakout

S&P "Bull Trap"?

"Black Candlesticks" are a concern for the S&P and Nasdaq

Archive

Show more