Wednesday, June 07, 2017

Low Key - Healthy Bullish Action

Today was the perfect day for bulls looking for buying opportunities. Markets exhibited small bullish 'hammers' as part of a 3-day pullback; collectively shaping up as bullish flags. As an added bonus, volume rose to register an accumulation day.

The S&P pullback will be confirmed on a move above 2,435 with a stop on a loss of 2,425.


The Nasdaq is trading in a very tight range; momentum longs will want to see an early break of 6,310 with a stop on a loss of 6,265. Volume didn't quite register as an accumulation day, but technical strength is very healthy.


The Russell 2000 finished with an inside day. While all of this is occurring in the larger trading range, action over the last couple of days is coiling into potential swing trade opportunity; play for a break of 1,400/1,392 with a stop on the flip side.


The Dow Jones Index is nicely building on its breakout. The weak relative performance (against the Nasdaq 100) is protecting it from speculators but the risk:reward opportunity is looking good for buyers and maybe long term buyers too.


The Nasdaq 100 has enjoyed great success but it's now up against channel resistance.


The relative performance breakout in the Semiconductor:Nasdaq 100 supports the acceleration in the trend. However, the index also finds itself against channel resistance in a potential profit take opportunity. Any further acceleration will open up the chance for blowout top.


For tomorrow, watch for upside follow through on today's small gain in the markets. This could be the start of the next phase of the rally.

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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