Tuesday, September 06, 2016

Post Labor Day Buying

Tuesday's action came as a bit of a relief for bulls worried the return of Traders from their holidays would kick start a wave of selling.  For a while it had looked like sellers were about to get what they wanted with a picture perfect break from tight action (in the hourly chart), but it came back strong to close near highs.

For example, the Dow showed this reversal nicely.


On the daily chart, the action hadn't the look of much but it's significant with higher volume accumulation. The S&P hasn't yet generated a reversal of technicals, but if this action continues it will happen soon.


The Russell 2000 has already posted new highs and this leadership - should it continue - will help bring other markets with it.


The Nasdaq wasn't left out either.


For tomorrow, look for continued gains from what was a positive start for the indices.

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

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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.
 
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