Daily Market Commentary: Finish Near Days' Lows
Bulls attempted a morning rush with strong opening gaps, but there was no expansion, and markets drifted lower to close at new lows.
Large Caps were least impacted by the selling, going as far as to finish with a small gain. A move to channel support will provide bulls with an angle for attack, look for this in the first hour of trading.
The Nasdaq finished the day with a bearish engulfing pattern, although pattern significance is reduced in the absence of overbought conditions. Again, the 200-day MA is looking like a good downside target.
The Russell 2000 offers the best long side opportunity. The index managed a small gain on the day, but the 50-day MA and trendline support are close together, along with key horizontal support. Stops can go on a loss of 815.
The Nasdaq 100 is also offering a support buy at the trendline, although the index is caught between its 50-day and 200-day MA.
Will markets offer bulls something tomorrow? The Russell 2000 and the Nasdaq 100 have the best long side opportunities.
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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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Large Caps were least impacted by the selling, going as far as to finish with a small gain. A move to channel support will provide bulls with an angle for attack, look for this in the first hour of trading.
The Nasdaq finished the day with a bearish engulfing pattern, although pattern significance is reduced in the absence of overbought conditions. Again, the 200-day MA is looking like a good downside target.
The Russell 2000 offers the best long side opportunity. The index managed a small gain on the day, but the 50-day MA and trendline support are close together, along with key horizontal support. Stops can go on a loss of 815.
The Nasdaq 100 is also offering a support buy at the trendline, although the index is caught between its 50-day and 200-day MA.
Will markets offer bulls something tomorrow? The Russell 2000 and the Nasdaq 100 have the best long side opportunities.
---
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!
