Daily Market Commentary: Prior 'Bull Traps' Hold
The S&P eased back from quite stubborn resistance at 1,343; technicals held net positive. For tomorrow, look for test of fast approaching 20-day MA. Which will break first? 20-day MA support or 1,343 resistance.
The Nasdaq was pegged back to 2,836 support but remains stuck in the 'bull trap' zone. The 20-day MA lurks at 2,800 to offer a second tier of support. But with the Nasdaq 100 holding its breakout despite today's losses it will be important for the Nasdaq to pressure 2,884 resistance.
And the challenge for the Nasdaq 100 is clear - maintain the breakout.
While the Russell 2000 is losing some steam as it struggles to clear the broad trading range. Holding the 20-day MA is an important starting point and that start is Tuesday.
It could be a difficult week for the markets and the more likely outcome is a continuation of the trading ranges. If a Debt solution is agreed it will offer a catalyst for breakouts in the Nasdaq and Russell 2000. However, failure to do so (on a Debt deal) could see recent strength slip away.
Follow Me on Twitter
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!