Thursday, May 24, 2018

Second Day of Bullish Defense

The market had initially reacted to Trump's decision to cancel his North Korean summit before coming to its senses and finishing where it left off yesterday.

For the Russell 2000 it was a bullish doji to follow the 'hammer'; those brave enough to buy the morning dip will be feeling confident as technicals remain bullish.


The S&P remains range bound but the longer this tight consolidation continues the stronger the reaction when it does eventually break (up or down).


 It was a similar story for the Nasdaq; range bound but looking more likely to break upside.


The Dow Jones posted a bullish hammer which kept the gap based on the open-close range. Relative performance edges towards bears but price action runs in bulls favour.


The Nasdaq 100 ranks as a breakout within a narrow rising channel. Look for a challenge on 7,186 as the index looks to shape a new base. Technicals are a little flat but still favour bulls.


The watch for tomorrow is the same as it was yesterday. Bears will need a confirmed break of the trading range to suggest shorts have a chance; aggressive shorts could play it here with a cover on a confirmed breakdown but the likelihood is for a quick cover.  the less risky option is to prepare for continuation of the breakout. 

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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