Channel Resistance Tags for S&P, Nasdaq and Nasdaq 100
Since redrawing channel resistance the S&P, Nasdaq and Nasdaq 100 now find themselves up against (accelerated) channel resistance. This may be viewed as an opportunity to take (partial) profits and/or sell covered calls.
Buying volume for the S&P was modest and technicals remain strong but some pause in the buying would look preferable at this point.
The Nasdaq and Nasdaq 100 were a little more bearish given they both finished with bearish black candlesticks on higher volume 'selling'. Again, with the channel acceleration in play and a six-day sequence of gains, some profit taking would appear favored.
The Semiconductor Index popped its head above the 'bear flag' but the breakout looks to have failed. Shorts with a stop above 1,340 is looking like a good trade here. Technicals are firm although the index is again underperforming against the Nasdaq.
For tomorrow, watch for a retreat from channel resistance for Tech and Large Cap indices.
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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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.
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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.
Buying volume for the S&P was modest and technicals remain strong but some pause in the buying would look preferable at this point.
The Nasdaq and Nasdaq 100 were a little more bearish given they both finished with bearish black candlesticks on higher volume 'selling'. Again, with the channel acceleration in play and a six-day sequence of gains, some profit taking would appear favored.
The Semiconductor Index popped its head above the 'bear flag' but the breakout looks to have failed. Shorts with a stop above 1,340 is looking like a good trade here. Technicals are firm although the index is again underperforming against the Nasdaq.
The Russell 2000 was the most boring of the indices. It has yet to kick on from its breakout - trading within its broader channel and has suffered a large relative loss in performance. This index sits in neutral territory; a drop below 1,545 would kill the nascent breakout and in itself open up a shorting opportunity.
For tomorrow, watch for a retreat from channel resistance for Tech and Large Cap indices.
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.
