Thursday, March 23, 2017

Indecision Strikes

It was no real surprise to see indices slow down in their recovery. Across the board doji mark a balance between buyers and sellers. The one index which bucked the trend a little was the Russell 2000. It staged a modest recovery which brought it back to former support turned resistance. However, technicals remain firmly bearish, and will stay this way even if there are additional gains.

The S&P closed on light volume with a doji below resistance. The narrow intraday trading range offers a low risk opportunity with a break and stop on the flip side. Tuesday's selling suggest bears have the best chance to pushing it lower.


It was a similar story for the Nasdaq. Today's doji closed on resistance much like the S&P. The technical picture is a little healthier than the S&P which may make a sell off more difficult to trigger.


Shorts may also want to look at the Semiconductor Index.  A MACD trigger 'sell' plays alongside a 'sell' in CCI. With the index under pressure, a move back to the slower rising trendline would not seem unreasonable at this point. #


For tomorrow, look for bears to twist the knife and try and break today's tight action. Bulls would do well to continue to follow action in the Russell 2000; another day like today (three-in-a-row) would firm up a swing low and offer a basis for further gains.

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

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Dr. Declan Fallon is a blogger who trades for fun on eToro and can be copied for free.
. I invest in my pension fund as a buy-and-hold.
 
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