Nasdaq Tags Channel Resistance
The post-Thanksgiving recovery offered some modest profit taking with Semiconductors experiencing the worst of the selling but the Nasdaq tagging resistance before reversing. It offered the clearest 'sell'/profit take trigger after the August support 'buy' signal. Given action in other indices it could break above resistance, accelerating gains, but taking some profits here would be prudent.
The Semiconductor Index is in need of a more orderly pullback. Since the September breakout it has more or less risen without respite - hogging the 20-day MA - it could do so again but I would look for a test of the 50-day MA, with a loss of the 20-day MA perhaps a shorting opportunity.
The S&P experienced a flat day with minimal intraday spread. Technicals are mixed with a pending MACD 'buy' offset by a soon-to-be 'sell' in On-Balance-Volume. The 'bear trap' remains dominant which means bulls have the edge.
The Russell 2000 suffered slightly more selling but in a manner which suggests more may follow. It too has 'bear trap' in play but this will be negated on a loss of 1,455. Technicals are positive with the exception of relative performance which has been losing ground to Tech averages since October and looks to be entering a second phase of loses.
For tomorrow, keep an eye out for a further expansion of today's selling. However, the Nasdaq is ready to surprise and is well placed to clear channel resistance; such a break would also come with short covering, further fueling gains.
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.
The Semiconductor Index is in need of a more orderly pullback. Since the September breakout it has more or less risen without respite - hogging the 20-day MA - it could do so again but I would look for a test of the 50-day MA, with a loss of the 20-day MA perhaps a shorting opportunity.
The S&P experienced a flat day with minimal intraday spread. Technicals are mixed with a pending MACD 'buy' offset by a soon-to-be 'sell' in On-Balance-Volume. The 'bear trap' remains dominant which means bulls have the edge.
The Russell 2000 suffered slightly more selling but in a manner which suggests more may follow. It too has 'bear trap' in play but this will be negated on a loss of 1,455. Technicals are positive with the exception of relative performance which has been losing ground to Tech averages since October and looks to be entering a second phase of loses.
For tomorrow, keep an eye out for a further expansion of today's selling. However, the Nasdaq is ready to surprise and is well placed to clear channel resistance; such a break would also come with short covering, further fueling gains.
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.
---Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.
Follow Me on Twitter
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.
