Daily Market Commentary: Dow Advances and Semiconductors Stall

The Dow pushed higher for a third day in a row, taking it well beyond 12,400 support.

($INDU)

via StockCharts.com

The gains in the Dow helped pull the S&P higher

($SPX)

via StockCharts.com

And even the Russell 2000

($RUT)

via StockCharts.com

Although the Nasdaq 100 finished with an inside day at breakout support.

($NDX)

via StockCharts.com

Likewise the semiconductor index also closed lower with an inside day.

($SOX)

via StockCharts.com

For Friday, the inside days of the semiconductor index and Nasdaq 100 offer the best trading opportunity. The Nasdaq 100 might offer the better prospect given it is lying at support; a loss of support and it's a bull trap (with a stop on a close above the 2-day high), while a gain defines the risk on a break of Thursday's low.

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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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