Unconvincing Recovery
A gap higher at the start of business didn't lead to any big gains, but it did manage to put some distance on yesterday's lows. Given the risk:reward potential it's probably not a great 'buy' here, but if a higher low can be posted it will give bulls something to work with. A gap higher tomorrow could allow buyers set a stop on a loss of today's lows.
The S&P made it back inside the 61.8% fib level of the December-January decline, but it may be too little to late to prevent a retest of the December swing low. The 2,000 level is the stop level for longs looking for a retest of 2,089.
The Russell 2000 is in a no-mans land between support/resistance of the handle. Technicals are net bearish, but little more to say for now.
Aggressive longs can look to the Semiconductor Index as it defends 660 support. It has the best risk:reward potential, even if the current decline doesn't look like it will hold such support. Technicals are also net bearish.
The first half hour tomorrow will be telling.
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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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The S&P made it back inside the 61.8% fib level of the December-January decline, but it may be too little to late to prevent a retest of the December swing low. The 2,000 level is the stop level for longs looking for a retest of 2,089.
The Russell 2000 is in a no-mans land between support/resistance of the handle. Technicals are net bearish, but little more to say for now.
Aggressive longs can look to the Semiconductor Index as it defends 660 support. It has the best risk:reward potential, even if the current decline doesn't look like it will hold such support. Technicals are also net bearish.
The first half hour tomorrow will be telling.
---
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.
Follow Me on Twitter
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.
JOIN ZIGNALS TODAY - IT'S FREE!
