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Nasdaq Pushes Beyond Breakdown Gap

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It was subtle but significant; the Nasdaq was able to go beyond the breakdown gap and make a push towards all-time highs, closing above 20,000 in the process. Technicals are net positive. This was the best of Friday's action heading into the long weekend.

S&P Challenges 'Bull Trap'

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The S&P has finally managed to close inside the prior 'bull trap', and in the process, has returned technicals to a net bullish state. There have been false dawns in the past, will this time be different? If we see a bearish reversal from here.

Market Drift Continues On Low Volume

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A mixed bag of action for indices - some finished slightly up, some slightly down - all on low volume. It wasn't really a day to get excited about anything. An index I haven't mentioned in a while is the Semiconductor Index. All key moving averages have converged once again after a period when it looked like the 20-day MA was about to do a runner. The index itself is struggling to get above these averages, but this is range bound between 4,400 and 5,450, and will remain so until one of these levels are breached. Because of its relative position to the averages, you could call this a 'glass half full' and edge bearish on the outlook.

S&P 'Bull Trap' Prevails As Recent Challenge Fails

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We are two-for-two for the S&P pushing beyond 6,100 resistance - this week was nearly an exact repeat of last week - just as things looked ready to push on, sellers returned. Supporting technicals are net bullish, which leaves just price to do its thing. What happens at converged 20-day/50-day MAs will be important, because there can only be one winner here.

Index Technicals (Bearish) Diverge To Price

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Markets posted gains sufficient to close breakdown gaps - sufficient to negate these gaps as breakdowns - but leaving indices stuck in broader trading ranges. The Russell 2000 ($IWM) is a case in point. Today saw a 'sell' trigger for On-Balance-Volume, following on from 'sell' triggers in Stochastics and +DI/-DI. Only the MACD is hanging on, but it's close to a 'sell' trigger from below the bullish zero line. Price action was more bullish, but the 50-day MA remains as resistance.

Redrawn Index Trends On Weekly Time Frames

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Market travails continue to be an issue for bulls. Positive opening gaps across indices quickly faded, leaving markets in a similiar position as to how they started Friday. So the 'bull trap' is still an issue for the S&P with Friday's action registering as a distribution day to boot. On the plus side, technicals are again net positive.

Markets Look To Fill Gaps As Uneasy Calm Descends

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After Monday's AI sell-off sent tech stocks reeling, we had some comeback as buyers filled the void, only for traders to take some quick profits off yesterday's bounce. The Russell 2000 ($IWM) posted its third indecisive doji in a row as it lingers near its 50-day MA and $226 support, but there was also a bearish reversal off mid-level stochastics combined with a distribution day. The index is positioned for a bounce and has held up better than the S&P and Nasdaq, so it's more likely to attract the next round of buying, and tomorrow would be as good as any.

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