Monday, November 21, 2016

Dow & Nasdaq Breakout

I covered my short position on today's little pop higher in the Dow Industrials, which along with the Nasdaq, delivered new breakouts.


The S&P added nearly a percentage point as Large Caps looked to make back some of the ground lost to Tech and Small Cap Indices. On-Balance-Volume will likely be bullish once volume is posted to the chart - confirming a return to a net bullish technical state.


The Nasdaq emerged from September and October highs with a fresh breakout. Technicals continue to strengthen in support of price action, and while newly overbought the index can remain that way for a significant period of time - as it did from July through to September.


The Russell 2000 is on its 11th day of gain. Can it make it 12?


Bulls hold all the cards for all the indices. Complacency is now the enemy.

You've now read my opinion, next read Douglas' blog.

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.


Share on StockTwits

---
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.
 
f9229fcfd1b1390be00cfccc86c90349c93a4179bf4227457c