Tuesday, December 13, 2016

Buyers Jump the Gun - Nasdaq Soars

Well, that selling didn't last long. The Nasdaq powered higher as leading tech companies like Apple and Microsoft added over 1%. While the index does well remains a long way from tagging the upper band marking a profit taking opportunity, as had occurred in the Russell 2000 this month.


The S&P didn't quite get the Tech kicker, but it was a clear break above yesterday's selling doji. Technicals remain positive.


The Russell 2000 barely managed to challenge yesterday's selling, and remained near yesterday's lows. Profit taking remains the favoured action. The index is holding on to its relative out-performance, but this is likely to slip if current action continues - particularly as Tech and Large Caps continue to gain a strong footing.


The next step forward is to look for measured move targets across all indices, using the late November sell off as the pivot point for the drive higher.  To calculate the measured move target, add the November high/low swing to the late November low, and project higher.

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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