Daily Market Commentary: S&P Breakout
The week continued its bright start with a resistance break for the S&P. Technicals are improving, with the MACD and On-Balance-Volume on the verge of a new 'buy' trigger. However, there was also a snap-back relative swing against Large Caps and back to Small Caps despite the breakout. Bulls will be gearing up for a measured move; the first target is 1,920.
The Nasdaq posted a good gain on higher volume accumulation. The index blew past its 50-day MA, and in the process generated a 'bull trap'. Today's action complicates a bearish head-and-shoulder reversal, with bears perhaps looking at a double head-and-shoulder; in this scenario, resistance kicks in 4,371. For Wednesday, look for a break of the 20-day MA. The 20-day MA will be an important level to attack for shorts looking for a quick trade, so it may be a tight day tomorrow.
The Russell 2000 offered a point of optimism for Nasdaq traders as it finished the day above its 20-day MA. It will find it harder as it gets closer to 1,210, but the last three days have been very good for the index.
Bulls re-established themselves with little opposition from bears, despite their dominant display last week. Bears have an opportunity tomorrow to attack 20-day MAs, and this may make it a scrappy day for traders.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com.
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The Nasdaq posted a good gain on higher volume accumulation. The index blew past its 50-day MA, and in the process generated a 'bull trap'. Today's action complicates a bearish head-and-shoulder reversal, with bears perhaps looking at a double head-and-shoulder; in this scenario, resistance kicks in 4,371. For Wednesday, look for a break of the 20-day MA. The 20-day MA will be an important level to attack for shorts looking for a quick trade, so it may be a tight day tomorrow.
The Russell 2000 offered a point of optimism for Nasdaq traders as it finished the day above its 20-day MA. It will find it harder as it gets closer to 1,210, but the last three days have been very good for the index.
Bulls re-established themselves with little opposition from bears, despite their dominant display last week. Bears have an opportunity tomorrow to attack 20-day MAs, and this may make it a scrappy day for traders.
---
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!
