Monday, May 28, 2018

Base Building Continues

Another Day inside the trading range, another day of waiting. Not a whole lot to say about Friday. The S&P remained tightly bound and confined to a narrow horizontal range. On-Balance-Volume switched to a 'sell trigger' as other technicals remained positive. The preferred trade is still an upside breakout from the hande.


The Nasdaq almost delivered a handle 'breakout' but wasn't able to put some distance from the handle. Any additional upside should be enough to deliver the breakout. Unlike other the S&P, supporting technicals are all positive.


Contributing to Nasdaq strength is the near 1% gain in the Semiconductor Index. It's close to challenging the 'bull trap' as it delivered the handle breakout the Nasdaq was so close to creating.



The Russell 2000 is still protecting its breakout and is the index best placed to reward momentum traders. Look for further upside.


The Dow Industrial Average is also working a minor breakout of its own. This is a better value play as it looks to shape a right-hand-side base up to January's highs.



The relationship to the Transports also looks positive with a fresh breakout in the ratio; buy the strength.


For tomorrow, continue to look for bullish handle breakouts from indices which have yet to deliver.

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.


Share on StockTwits

---
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.
 
f9229fcfd1b1390be00cfccc86c90349c93a4179bf4227457c