Inside Day Set Up
Monday's candlestick finish for many of the lead indices was an inside day of an inside day. How this coiling action unravels remains to be seen, but trading a break of Monday's high/lows with a stop on the flip side would give swing traders something to work with.
The S&P is playing into a rising wedge with technicals net bearish, although intermediate term stochastics and the MACD are on 'buy' signals. This looks like it will be break down, but those who follow my ChartDNA posts will see an improving intermediate term picture (for bulls).
I should add, I'm holding a Dow Jones short position, so my bias is bearish - but I have doubts...
The Nasdaq is coasting along its 50-day MA with good technical strength. It hasn't got the weakness of the S&P with strong relative performance against the latter index.
The Russell 2000 is holding to a 'bull flag' and today's action hasn't changed what still could be a solid bullish setup. The index is net bullish in technicals, but underperforming relative to the Nasdaq.
Today was a setup day, but in itself didn't give away too many clues as to what may come next.
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,
egister 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.
The S&P is playing into a rising wedge with technicals net bearish, although intermediate term stochastics and the MACD are on 'buy' signals. This looks like it will be break down, but those who follow my ChartDNA posts will see an improving intermediate term picture (for bulls).
I should add, I'm holding a Dow Jones short position, so my bias is bearish - but I have doubts...
The Nasdaq is coasting along its 50-day MA with good technical strength. It hasn't got the weakness of the S&P with strong relative performance against the latter index.
The Russell 2000 is holding to a 'bull flag' and today's action hasn't changed what still could be a solid bullish setup. The index is net bullish in technicals, but underperforming relative to the Nasdaq.
Today was a setup day, but in itself didn't give away too many clues as to what may come next.
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,
egister 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.
