Monday, April 27, 2015

Sellers HitAppl

It was day sellers had control over not long after the cash open. The Russell 2000 broke from the channel in a clean slice which left the index just above the 50-day MA. The index had already suffered a relative loss to the Nasdaq and S&P, and today's decline just accelerated this decline.


The S&P attempted a breakout but it was quickly rebuffed. However, losses weren't enough to take it anywhere near support. It will take another 2-3 days of losses to see a test of the trendline, which is the most likely area for a bounce. A close above 2120 would confirm a breakout.


The Nasdaq closed with a bearish engulfing pattern on higher volume distribution. Apple's afterhours earnings may offer some upside tomorrow, although Apple's earnings gains were modest. A confirmation test of 5000 would look like a plan for the week.


The Nasdaq 100 also found its resistance at bearish wedge support. The tag of resistance looks ready to come back and tag support.


And the Semiconductor Index sides with bears.


Disappointed my two short plays in the Nasdaq 100 didn't stick. It was an unfortunate stop exit near the top, although the % loss was small. For those outside of the U.S., you can follow my trades on eToro. Note, my eToro account is a low-key, just-for-fun account. My real money is held in a brokerage account and holds equities and ETFs.

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. I do a weekly broadcast on Friday's at 13:30 GMT for Tradercast, covering indices, FX and gold, silver and oil - all are welcome! You can read what others are saying about Zignals on Investimonials.com.

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