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.
($NDX)
via StockCharts.com
The Nasdaq is close (or has completed?) to a breakout of its own. A close above 2,800 would confirm and complete a new bear trap.
($COMPQ)
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.
($SOX)
via StockCharts.com
Finally, the S&P played perfectly off channel support (for a second time in two weeks). It had the benefit of bullish technicals which may help build this newly created rally.
($SPX)
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?
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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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