Thursday, November 20, 2014

Bulls Pressure Highs, Big Recovery in Small Caps

Another good day sent indices back to highs, but it was the Russell 2000 that probably came out best.  Yesterday's losses in Small Caps were consumed by a bullish engulfing pattern. The index defended its 20-day MA, although stochastics weren't oversold,which would have strengthened the engulfing pattern.


The Nasdaq finished at handle resistance. Volume climbed to register an accumulation day, with support at a lows of 4,653.


The S&P is primed for some follow through tomorrow.  Stops on a loss of 2,040.


The semiconductor index launched a second challenge of the 'bull trap'; this should help both Nasdaq and Nasdaq 100.


For tomorrow, look for upside in lead indices. Shorts have little to work with. unless today's gains are retraced. .

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com, and Product Development Manager for ActivateClients.com. You can read what others are saying about Zignals on Investimonials.com.

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