Daily Market Commentary: Nasdaq 100 Breaks Into Gap
The big change was the bear trap and breakout in the Nasdaq 100. The index pushed into the prior gap down, setting up a potential challenge of all-time highs at 2,403.5. Volume even climbed to register a mild accumulation day.
The Nasdaq is close (or has completed?) to a breakout of its own. A close above 2,800 would confirm and complete a new bear trap.
Keeping a lid on proceedings is the semiconductor index. It too could start a new breakout - but there is a fine line between breakout and breakdown.
Finally, the S&P played perfectly off channel support (for a second time in two weeks). It had the benefit of bullish technicals which may help build this newly created rally.
After a substantial one-day gain it looks likely Friday will be case of consolidating the push higher. Tight (narrow) trading to come?
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.
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