Tuesday, November 15, 2016

S&P and Semiconductors Breakout

Market divergences continued to play out. This time, the S&P and Semiconductors broke clear in fresh breakouts, but the likes of the Nasdaq and Nasdaq 100 haven't yet followed Semiconductors higher.

The S&P cleared the last swing high, but still has August highs to breach. Technicals, outside of On-Balance-Volume, are bullish.

The Nasdaq finished higher but hasn't yet marked new all-time highs. As with the S&P, technicals - other than On-Balance-Volume - are bullish.


Finally, the Russell 2000 finished with yet another higher close. There can't be much juice left in the tank before traders take profits.


The next thing to look out for is what will happen when sellers do take up the opportunity gains since Trumps' election have delivered. From a charting perspective, these gains do look artificial.

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

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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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