Stage set for a bounce; GLD and Tech

While the intermediate and long term charts point towards further declines, in the short term there appears to be tradable bounce opportunities; chiefly in tech and Gold. Richard Lehman's charts show indices in the mid-range of downtrends. His chart for GLD has longside merit over an intermediate time frame:


What of Tech indices? On the daily time frame we have bullish harami crosses. In the Nasdaq there is an obvious support level around 2208 with upside targets of converged resistance and/or the 50-day MA:


With the Nasdaq 100 the descent is steeper so declining resistance would appear to be the more logical target than the 50-day MA:


All bets are off if the stop levels are taken out (especially on a closing basis)



Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website

Popular posts from this blog

Nasdaq primed for breakout

Image
Markets experienced modest losses, but there is still underlying strength in the market.  The Nasdaq is primed to break to a new swing high, helped by the relatively light volume associated with today's selling as it knocks on the door for a close above 12,200. Technicals remain net bullish, although the index did lose some relative performance against the S&P.  However, Rate Of Change is the highest it has been for months, another indication of bullish strength and the likelihood of a breakout in the coming days.
Read more

S&P "Bull Trap"?

Image
I thought there was sufficient evidence to argue against a "bull trap" in the S&P, but it would appear the market wasn't interested in such thoughts and sellers were quick to reverse the initial push above 4,200.  Adding to the pain were new 'sell' triggers in MACD and On-Balance-Volume, although the former occurred above the 'bullish' zero line, making it a weak signal. Selling volume ranked as distribution as selling momentum picked up speed.  The index is also underperforming relative to the Russell 2000. 
Read more

"Black Candlesticks" are a concern for the S&P and Nasdaq

Image
A bright start for bulls on the back of positive $NVDA earnings wasn't enough to generate a day of meaningful gains.  However, it did help stall the losses of the last couple of days. The Nasdaq was the biggest beneficiary of today's action, but not enough to see an end-of-day finish that cleared last week's swing high, nor delivery of a large white candlestick, despite the morning breakout gap.  Technicals are net bullish and relative performance against the S&P has become consistently stronger since the start of May.  While today's candlestick I would view as typically 'bearish', today's volume ranked as confirmed accumulation (bullish). Overall, I would be looking for higher prices from here. 
Read more

Archive

Show more