Stock Market Commentary: Breakouts Galore

The hotter than usual bank holiday in Ireland looks to have spread to NY with a swathe of bullish breakouts supported by upturns in technicals. It's hard to be a buyer in this environment but for those that have it was a great Monday. The Nasdaq sliced through 1,785 on a fresh MACD trigger 'buy' and bullish cross in on-balance-volume which was enough to return all technicals to net positive.


Semiconductors again were there to lend a hand as some creeping bearishness was blown away. Bullish Action in the semiconductors has very much fit the bill for a significant market bottom - it's just hard to shake the feeling (especially when you consider cycle analysis) that the bottom has come and gone. But it's a welcome relief all the same.


Small caps came to the fore as market relative strength show Small Caps as top dog {Small caps > Tech > Large Caps}. The Russell 2000 finished above its 200-day MA on a MACD trigger 'buy'. Not to mention the breakout of 515 resistance.


Even the S&P was able to crack above its 200-day MA on higher volume. Not to mention the MACD trigger 'buy' and on-balance-volume bullish cross.


The good news is that the breakouts introduce new clear support; should these break they will create bull traps and it could be a sharp down from there. But bulls have it for now.

Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.

Popular posts from this blog

Markets attempt a swing low for the seven day decline

Image
It looks like we have completed a zig-zag retracement for indices, with the Nasdaq and Russell 2000 finishing the day with a second doji for the 'zag' to match the intial doji of the 'zig'.  There were additional support levels for indices to use too.  For the Nasdaq, today's 'dragonfly doji' also has the potential to form a bullish harami doji - building off the 20-day and 50-day MAs. There was a 'sell' trigger in relative performance against the Nasdaq, along with 'sell' triggers in the ADX and On-Balance-Volume. 
Read more

Low volume selling after Russell 2000 breakout

Image
Yesterday finally delivered the long awaited breakout in the Russell 2000 on higher volume accumulation.  Today saw some low key selling on lighter volume, but the selling was not accompanied by distribution. The Nasdaq still offers net bullish technicals, but today's selling kicked in on the test of its 200-day MA. Yesterday's buying did count for accumulation. 
Read more

Minor losses pressure Thursday's reversal attempt

Image
I was looking for more from Friday's trading action as sellers were able to prevent buyers from gaining any traction over the course of the day.  A soft open got softer as the day progressed and the week finished with markets now looking vulnerable to a gap down open on Monday.  If there was a positive it was that selling volume was light, but there was further technical degradation by the close. This was perhaps hardest felt in the Russell 2000 ($IWM), which sold off by less than 1%, but there was enough weakness to see a 'sell' trigger in stochastics to turn technicals net bearish for the index.  There is a support level around $192.85 which needs to hold if the index is to continue a sequence of higher highs - higher lows from the February bottom.
Read more

Archive

Show more