Tuesday, June 09, 2015

Pause in Decline

A day where the status quo was the end-of-day result after yesterday's selling. This is set up nicely for a rally tomorrow, even if some indices lack a natural support level to work off. Also favouring longs is the lighter volume selling which accompanied today's action. The S&P is net bearish at a technical level, but may find some traction at a minor swing low of 2,067.


The Nasdaq finished at bearish wedge support. The doji recovered enough ground to mark a spike low. If there is a concern, it's that volume rose in confirmed distribution.


The Russell 2000 had a quiet day. It's caught in the range of recent days, enough to redraw the channel which had earlier suggested a bullish breakout.


The Semiconductor Index tagged the 50-day MA, which is looking a good place for bulls to mount a challenge.


Premarket action should be a good guide. In the absence of key economic data, look for premarket levels near today's closing price to kick start the rally (and collectively, a bullish morning star).

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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