Nasdaq Primed to Breakout
Yesterday it was the S&P and Semiconductor Index which broke higher. Today that honor almost went to the Nasdaq, but it couldn't quite do it. However, the Nasdaq is well placed to do so tomorrow. The Nasdaq finished with an accumulation day, and the consolidating breakout in the Semiconductor Index should help deliver the break. Technicals are nicely positioned as net positive too.
The S&P had a low key day. It finished with a doji that held above yesterday's breakout level. Selling volume also dropped. Bulls may even some follow through here: either the Nasdaq helping the S&P, or vice versa.
The Russell 2000 did little, its doji was a point above key 1,200 support, but today's action was relatively tight. Its day may come by the end of the week.
The Nasdaq 100 isn't as well placed as the Nasdaq as there is still room to resistance before a breakout can be declared. The good news is that today's action reversed the last bearish technical signal - returning the technical picture net bullish.
For tomorrow, the trade is to look for a breakout in the Nasdaq. Premarket strength in the S&P and/or Russell 2000 would provide the basis for this move. Although the Nasdaq is likely to work a breakout on its own merit, and this will provide the catalyst for the S&P and Russell 2000 to bank gains.
You've now read my opinion, next read Douglas' and Jani's.
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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 had a low key day. It finished with a doji that held above yesterday's breakout level. Selling volume also dropped. Bulls may even some follow through here: either the Nasdaq helping the S&P, or vice versa.
The Russell 2000 did little, its doji was a point above key 1,200 support, but today's action was relatively tight. Its day may come by the end of the week.
The Nasdaq 100 isn't as well placed as the Nasdaq as there is still room to resistance before a breakout can be declared. The good news is that today's action reversed the last bearish technical signal - returning the technical picture net bullish.
For tomorrow, the trade is to look for a breakout in the Nasdaq. Premarket strength in the S&P and/or Russell 2000 would provide the basis for this move. Although the Nasdaq is likely to work a breakout on its own merit, and this will provide the catalyst for the S&P and Russell 2000 to bank gains.
You've now read my opinion, next read Douglas' and Jani's.
---
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!
