Daily Market Commentary: Nasdaq 100 Breaks Into Gap

Bulls grabbed the opportunity offered by the defense of 50-day MAs or channel support and pushed indices higher.

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.


via StockCharts.com

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.


via StockCharts.com

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.


via StockCharts.com

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.


via StockCharts.com

After a substantial one-day gain it looks likely Friday will be case of consolidating the push higher. Tight (narrow) trading to come?


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.


Popular posts from this blog

Markets attempt a swing low for the seven day decline

Low volume selling after Russell 2000 breakout

Minor losses pressure Thursday's reversal attempt


Show more