Weekly Market Commentary: Has Santa Left The Building?

The arrival of the New Year brings in new challenges after a typical low volume holiday week. The broader picture remains unchanged from my last update; indices trading between support/resistance of rising channels (bear flags?).

The Russell 2000 will start the New Year looking to challenge 760 resistance. It made a brief run on resistance during the week, but holiday volume trading was never going to be enough to break it. The fight starts this coming week.


The Dow is pegged against broader declining resistance (within which the rising channel resides). If bears have an edge they will show themselves in the Dow.


The Nasdaq has a little more room to work with - if bears do turn up the heat this week it will take a significant sell off to break support (but the flip side is also true).


The S&P is similarly positioned; closer to the Nasdaq scenario than that of the Dow. Big support at 1,209.


The weekly charts aren't offering much in the way of probable moves. The daily charts suggest a bullish start to the week, but it might be a couple of days before trading volume picks up to full strength.

Happy New Year everyone!

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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 Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.


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