Markets Breakout

In a day of turmoil the unlikely struck in many guises; from the Trump election, to the election pre-maket sell off, to the huge accumulation rally delivering new breakouts - it was 6-months of activity in a single day!

Kicking off things is the S&P breakout. Today's volume was massive. With today's gain it only has to negotiate the tight range from July/August before new all-tie highs are in play. Today's gain brought fresh 'buys' to Stochastics, +DI/-DI, and MACD.

The Nasdaq came back to close above its 50-day MA. It will soon find itself challenging the 'bull trap' from the upside breakout of the prior rising wedge. A move above 5,340 opens up the possibility of new highs.

The Russell 2000 was the big winner. A huge 3% gain (were a 3% loss was a distinct possibility) delivered a close above 50-day MA and new 'buy' signals in the MACD and +DI/-DI.

What markets would welcome now is a breather. Key will be hanging around at today's highs and preparing for the next move higher. Tomorrow's market is another day, but today was exhausting.

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.

---
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.