Greece Strikes Back (or was it China?)
A doubly whammy of weakness from Asian and European sessions left bulls with little room to stretch their legs. Not surprisingly, there were few willingly to make a commitment so bears had the market to themselves. The good news is that today's decisive selling pushes markets out of their stiffing ranges.
The S&P dropped below 2080, and is knocking on the door of 2040. Technicals are again net negative. The 200-day MA at 2053, just above the 2040 level, may play a role in tomorrow's action.
While the Dow has already indicated a break from the March/July range.
The Nasdaq gapped out of its bearish rising wedge. Lots of room down to the 200-day MA available. Shorts may look to attack rallies back to 5038.
While the Semiconductor Index suffered another big hit. It's trading down at its 200-MA having crashed out of its range.
The reversal in the Russell 2000 has left behind a 'bull trap', although this has dropped it back inside the prior range, and favoring a move back to 1,210.
Tomorrow doesn't look to offer bulls much despite the heavy selling. It might be a time for a consolidation, although it may only turn out to be only a pause in the decline. A meaningful decline is long overdue, but is it happening now?
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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The S&P dropped below 2080, and is knocking on the door of 2040. Technicals are again net negative. The 200-day MA at 2053, just above the 2040 level, may play a role in tomorrow's action.
While the Dow has already indicated a break from the March/July range.
The Nasdaq gapped out of its bearish rising wedge. Lots of room down to the 200-day MA available. Shorts may look to attack rallies back to 5038.
While the Semiconductor Index suffered another big hit. It's trading down at its 200-MA having crashed out of its range.
The reversal in the Russell 2000 has left behind a 'bull trap', although this has dropped it back inside the prior range, and favoring a move back to 1,210.
Tomorrow doesn't look to offer bulls much despite the heavy selling. It might be a time for a consolidation, although it may only turn out to be only a pause in the decline. A meaningful decline is long overdue, but is it happening now?
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. 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!
