Thursday, May 31, 2018

Sellers Challenge Breakouts But Markets Hold On

Trump's tariffs sent markets on a bit of a spin but total selling, while ranked as distribution, didn't go above 1%. More importantly. the bullish setups from yesterday remain valid.

Loses in the S&P took the index back to challenging the 'bear trap'. An open around 2,700 could offer a discounted long opportunity.


The Nasdaq finished with a small 'inverse hammer' just above the breakout level.


Small Caps gave up a large chunk of yesterday's follow-through move but not enough to negate it.  Technicals remain net bullish.


The only index where further losses might be favoured is the Dow Jones Industrial Average. Today's losses may have pushed a little too hard for a recovery tomorrow; a move to rising channel support looks a better play.


Finally, the Semiconductor Index - despite not having a great day yesterday - still maintains its breakout.


For tomorrow, those favouring continued weakness can focus on the Dow Jones. Longs could go aggressive on the S&P or look for the Russell 2000 to recover its lost ground today.

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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