Modest Selling
Yesterday's buying likely caught shorts out, but later weakness may have encouraged profit taking today. The damage was relatively light and only served as a warning.
For example, the S&P didn't lose breakout support and selling volume was light
The Nasdaq did see more selling to finish with a distribution day. The index finished on its 20-day MA, which it last saw in a convergence in June and was followed by a successful bounce.
The Russell 2000 lost its breakout, but it didn't give up rising support. It hasn't yet tested its 20-day MA but it could do so tomorrow. Note, relative performance against the Nasdaq (and S&P) continued to improve.
The Semiconductor Index is also feeling the pressure, but it hasn't given up support.
I have been fishing around Copper for a play on the hourly chart. I thought I had a chance today, but it was stopped out. There is very little love for commodities, but Copper is cheap and Semiconductors are performing well which should see demand for the metal improve. A swing low should emerge soon, but it may do so without me.
Commodities are at a deep discount to other global assets. If you can avoid the leverage, accumulating commodities could reap awards in the years ahead.
Will tomorrow offer something more?
You've now read my opinion, next read Douglas' and Jani's.
I trade a small account on eToro, and invest using Ameritrade. If you would like to join me on eToro register through the banner link and search for "fallond".
If you are new to spread betting, here is a guide on position size based on eToro's system.
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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 for ChartDNA.com, and Product Development Manager for FirstDerivatives.com. I also trade on eToro and can be copied for free.
For example, the S&P didn't lose breakout support and selling volume was light
The Nasdaq did see more selling to finish with a distribution day. The index finished on its 20-day MA, which it last saw in a convergence in June and was followed by a successful bounce.
The Russell 2000 lost its breakout, but it didn't give up rising support. It hasn't yet tested its 20-day MA but it could do so tomorrow. Note, relative performance against the Nasdaq (and S&P) continued to improve.
The Semiconductor Index is also feeling the pressure, but it hasn't given up support.
I have been fishing around Copper for a play on the hourly chart. I thought I had a chance today, but it was stopped out. There is very little love for commodities, but Copper is cheap and Semiconductors are performing well which should see demand for the metal improve. A swing low should emerge soon, but it may do so without me.
Commodities are at a deep discount to other global assets. If you can avoid the leverage, accumulating commodities could reap awards in the years ahead.
Will tomorrow offer something more?
You've now read my opinion, next read Douglas' and Jani's.
I trade a small account on eToro, and invest using Ameritrade. If you would like to join me on eToro register through the banner link and search for "fallond".
If you are new to spread betting, here is a guide on position size based on eToro's system.
---
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 for ChartDNA.com, and Product Development Manager for FirstDerivatives.com. I also trade on eToro and can be copied for free.
