Daily Market Commentary: Vacation Trading

Not much to write about. The S&P did nothing more but offer swing traders a nice narrow intraday range to trade against.


The Nasdaq added a few more points, but nothing exciting other than to please existing shareholders.


Somewhat surprised to see the Russell 2000 gain. I would still like to see a move back to channel support, but nothing to say it will. The 'sell' trigger in CCI was negated.


The Nasdaq 100 tagged channel resistance. Bears may take that as a sign to attack, but given the light volume it's not the strongest of bearish signals. A stop above 3,860 would be the risk measure if looking to short. The MACD is holding on to a 'sell' trigger, but looks ready to switch to a 'buy'.


Finally, the semiconductor index looks ready to deliver on the 'bear trap' - probably the best of the long trades out there.


For Tuesday, bulls can look to the aforementioned semiconductor index, and bears to the Nasdaq 100. I'm going back to watching the more than entertaining Germany vs Algeria WC game.

---

Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.

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!

Popular posts from this blog

S&P "Bull Trap"?

Image
I thought there was sufficient evidence to argue against a "bull trap" in the S&P, but it would appear the market wasn't interested in such thoughts and sellers were quick to reverse the initial push above 4,200.  Adding to the pain were new 'sell' triggers in MACD and On-Balance-Volume, although the former occurred above the 'bullish' zero line, making it a weak signal. Selling volume ranked as distribution as selling momentum picked up speed.  The index is also underperforming relative to the Russell 2000. 
Read more

"Black Candlesticks" are a concern for the S&P and Nasdaq

Image
A bright start for bulls on the back of positive $NVDA earnings wasn't enough to generate a day of meaningful gains.  However, it did help stall the losses of the last couple of days. The Nasdaq was the biggest beneficiary of today's action, but not enough to see an end-of-day finish that cleared last week's swing high, nor delivery of a large white candlestick, despite the morning breakout gap.  Technicals are net bullish and relative performance against the S&P has become consistently stronger since the start of May.  While today's candlestick I would view as typically 'bearish', today's volume ranked as confirmed accumulation (bullish). Overall, I would be looking for higher prices from here. 
Read more

Round 2 for the bearish "black" candlestick in S&P and Nasdaq

Image
The Nasdaq started brightly but ended up closing below its open price, but above yesterday's close. The S&P did something similar, although the intraday range is narrower. These two setups are somewhat complicated by the new 'buy' triggers in On-Balance-Volume for both the Nasdaq and S&P. And the new MACD trigger 'buy' for the S&P. Price action is key, so I would expect the candlestick to trump the technical picture; watch for lower prices tomorrow.
Read more

Archive

Show more