Wednesday, December 07, 2016

Large Caps Breakout

Yesterday it was the action of Small Caps. Today it was the turn of Large Caps. Significant gains for both S&P and Dow took indices well past their recent swing highs.

The S&P registered an accumulation day on a solid gain of 1.3%. Technicals are all bullish. Will this see a measured move higher? 2,310 is the target.


The Dow made a significant gain, no seen since the election result. Can it tag 20,000 before the year is out? There is nothing in the way of price resistance to stop it. As with the S&P technicals are all bullish.


The Russell 2000 was not to be left out, adding nearly 1%. Another 3% points will see it hit the 5% zone of 5% historic action.


There is little on offer for shorts. Many will have been hit by today's action, particularly in the Dow. Sellers will look to the Tech indices for guidance as these are the last to be restrained by recent high resistance.

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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