Daily Market Commentary: Narrow Range Day

Low volume and a tight intraday spread didn't change a whole lot. The built-in tension could unwind with a further push higher - particularly for an index like the S&P which is trading in the middle of its channel.

($SPX)

via StockCharts.com

The flatlined MACD reversed its 'sell' trigger and even managed a modest accumulation day. Watch how it behaves on selling given its proximity to channel support.

($COMPQ)

via StockCharts.com

The Nasdaq 100 finished on former channel support; is this a return to the dominant channel or just a peak in the rally?

($NDX)

via StockCharts.com

Although after a series of strong days the semiconductor index was quiet.

($SOX)

via StockCharts.com

Rally intact - even if a little dull today.

Follow Me on Twitter

Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Zignals Trading Strategy Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.

Zignals offers a full suite of FREE financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock quote watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own trading system and sell your trading strategy in our MarketPlace to earn real cash.

You can read what others are saying about Zignals on Investimonials.com.

JOIN US TODAY - IT'S FREE!

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