Wednesday, May 24, 2017

Rally Keeps Going But New Highs Await

The S&P is only a short step away from confirming new highs, but today's action will have kept shorts wary with the risk of whipsaw high. A simple push above 2,406 could deliver an acceleration higher. The one disappointment is the light volume.


The Nasdaq isn't quite as close to the S&P in marking a new high, but today's action did negate yesterday's bearish 'black' candlestick. The 'bull trap' is just a few points away from being consigned to history - can tomorrow deliver?


Finally, the Russell 2000 still works towards negating last Wednesday's loss (with a lot more to do beside that).  Its next challenge will be clearing the 20-day MA.


One index which is offering itself as a decent looking breakout candidate is the Dow Jones Industrial average; a decent handle has shaped over the course of April-May.


For tomorrow, bulls should watch the aforementioned Dow Jones. Bears may find joy in a quick reversal of the S&P or Nasdaq, but it would not be a trade to linger in if the position moved against you early.

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.


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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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