Wednesday, May 13, 2015

Range Bound Trading

Yesterday's recovery followed with further highs, but then buyers went AWOL and things settled back to the day's lows. Rinse and Repeat.

The S&P has nestled itself against rising trendline support as today's action registered as confirmed distribution.  Tomorrow, bears will be seeing if they can break the trendline, but I won't be holding my breath.


The Nasdaq tagged resistance and remains below the rising wedge. The 'bear trap' is still in play, but there needs to be a return inside the rising wedge if this is to be confirmed.  A move above 5040 opens up for a challenge of high at 5119.


The Russell 2000 is at channel resistance, so the next move will either confirm resistance or deliver a breakout. Should this break upside, then the 'Death Cross' between 20-day and 50-day MAs will quickly come into play as alternative resistance.


Another index at resistance and looking better as a shorting prospect is the Semiconductor Index. There is converged resistance of the channel, 50-day MA, and 704. Shorts may see some joy here tomorrow.


For tomorrow, the S&P may offer bulls a chance at trendline support. Shorts can look to the Russell 2000, Nasdaq and Semiconductor Index.

You've now read my opinion, next read Douglas' and Jani's.

Share on StockTwits

---

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. 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.

JOIN ZIGNALS TODAY - IT'S FREE!
 
f9229fcfd1b1390be00cfccc86c90349c93a4179bf4227457c