Wednesday, January 08, 2020

S&P Bounds Along Support, Nasdaq Bounds Along Resistance

Overall, it was a good day for indices despite Middle East tensions.  The margins are small, but the S&P is moving nicely along rising trendline support, while the Nasdaq is running along upper resistance.

The S&P is enjoying a relative performance advantage although the MACD has drifted into a 'sell' trigger. Other technicals are good and price action is strong. Volume inched higher as accumulation.


The Nasdaq is doing a little better than S&P in that it's rally is actually running up against resistance as part of a narrow channel. Technicals are all good with no conflicts although the MACD is trending towards a 'sell' trigger.


The Russell 2000 had broken from the rising channel as money rotated out of growth stocks into technology sector stocks. The MACD trigger 'sell' confirmed a slowing of the rising trend - but the trend is continuing.


The Dow Jones Index is also trending higher on the back of a sustained relative underperformance against Tech Indices. Again, other technicals are positive and unlike the S&P is not riding along support.


The Semiconductor Index is one of the strongest indices in relative performance having well surpassed the August/September swing highs; this is setting the early tone for 2020.


No reason for change in the outlook as all lead indices chug higher.


You've now read my opinion, next read Douglas' blog.

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Investments are held in a pension fund on a buy-and-hold strategy.
 
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