Daily Market Commentary: S&P Breakout Lost & Happy Paddy's Day
The S&P breakout (from the January highs) was negated on Friday's close, effectively converting the February-March rally into the boundary for a horizontal trading range. There was a 'sell' trigger in On-Balance-Volume to follow the earlier one for the MACD.
The Nasdaq is hanging on to its breakout. The 20-day MA didn't act as much support, but 4,231 still has an opportunity to play a role as a place for demand.
The Russell 2000 also 'bull trapped' its breakout, but Friday's buying is attempting to develop a swing low at 1,180 support. However, technicals are weakening and not yet oversold - suggesting Friday's attempt at building support may be in vain. Aggressive longs would probably not want to hold on a push below 1,170.
It's perhaps a little early for a new swing low, although breakout support may offer bulls a chance on Monday. Keep stops tight if going long.
Otherwise, have a Happy St. Patrick's Day!
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com.
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The Nasdaq is hanging on to its breakout. The 20-day MA didn't act as much support, but 4,231 still has an opportunity to play a role as a place for demand.
The Russell 2000 also 'bull trapped' its breakout, but Friday's buying is attempting to develop a swing low at 1,180 support. However, technicals are weakening and not yet oversold - suggesting Friday's attempt at building support may be in vain. Aggressive longs would probably not want to hold on a push below 1,170.
It's perhaps a little early for a new swing low, although breakout support may offer bulls a chance on Monday. Keep stops tight if going long.
Otherwise, have a Happy St. Patrick's Day!
---
All Contributions Welcome - Thank You!
Follow Me on Twitter
Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com.
You can read what others are saying about Zignals on Investimonials.com.
JOIN ZIGNALS TODAY - IT'S FREE!