Daily Market Commentary: Inside Day
It was a day which had more in common with last week's vacation trading than the start of a new trading week. Indices were little changed on the day, trading in a narrow range on slightly heavier volume.
The chief concern was the semiconductor index. It dropped further away from a down-turning 20-day MA, finishing on 390 support. Bulls won't want it to lose much more with the 50-day MA at 383, the last line of defense for bulls.
The worry for the Nasdaq and Nasdaq 100 is while they are holding 20-day MA support, the influencing semiconductor index is pulling further away from its own. Both tech averages are operating on a 'sell' trigger in their MACDs, but other technicals are holding the bullish line.
Those looking for a long trade can focus on the Dow which is holding rising trendline support having bounced off its 50-day MA.
Markets are still vulnerable, although I have taken a long position in the XLU from today's open. I suspect there is still enough juice in the tank to see another leg higher.
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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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The chief concern was the semiconductor index. It dropped further away from a down-turning 20-day MA, finishing on 390 support. Bulls won't want it to lose much more with the 50-day MA at 383, the last line of defense for bulls.
The worry for the Nasdaq and Nasdaq 100 is while they are holding 20-day MA support, the influencing semiconductor index is pulling further away from its own. Both tech averages are operating on a 'sell' trigger in their MACDs, but other technicals are holding the bullish line.
Those looking for a long trade can focus on the Dow which is holding rising trendline support having bounced off its 50-day MA.
Markets are still vulnerable, although I have taken a long position in the XLU from today's open. I suspect there is still enough juice in the tank to see another leg higher.
---
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 Trading Strategy Marketplace 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 strategy and sell it in the MarketPlace to earn real cash.
You can read what others are saying about Zignals on Investimonials.com.
JOIN ZIGNALS TODAY - IT'S FREE!
