Wednesday, October 05, 2016

Bulls Attempted a Rally

What was looking very good into the last couple of hours just ended up been good.  The weakness from yesterday was pushed aside and there is a buying opportunity for aggressive traders with a loss on yesterday's lows.

The bullish lead was the Russell 2000. It was in the process of breaking from the 'bull flag', but ended the day back inside it. Technicals still hold to a MACD 'sell', with a weakening +DI/-DI and stochastic. However, price action is the best of the indices.


The S&P had a quiet day and didn't venture outside of rising wedge support/resistance.


The Nasdaq also experienced a tight trading day with little to report.


One thing to watch is the Volatility Index. It may be ready to break higher, although for 2012 through to 2015 it did very little as the Nasdaq rallied hard.


Much as I would like to see bears take this market down, today's action does point to continued demand; demand which has outgunned Brexit fears and a potential Trump victory.

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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