Thursday, September 21, 2017

Tech Trades Squeeze Stops; Russell 2000 Approaches Resistance

There is a bit of an overreach on today's action as the level of loss was light. However, the much-anticipated breakouts in the Nasdaq and Nasdaq 100 look like they will have to wait a little longer. Both Tech indices saw the squeeze put on tight long stops, but not enough to suggest a panic sell-off is imminent. However, any sell-off has to be watched; losses below the 50-day MA would be concerning.


The Nasdaq 100 is looking a little more vulnerable with the MACD trigger 'sell' and +DI/-DI sell' trigger. Look to this index for leads.


The index which has been offering the low-key opportunity for bulls is the Russell 2000. It fell just 2 points shy of the 1,450 target I'm looking for, but no reason to suggest it can't make this tomorrow.  Technicals remain healthy.


As a footnote, the S&P and Dow did little worthy of attention. Breakouts remain intact and Technicals are sound.


For tomorrow, it's a watch-and-wait scenario for Tech indices. The Russell 2000 remains a hold with perhaps partial profits for longs - the potential for a break of 1,450 is good.

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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