Daily Market Commentary: Bullish End of Week
After a week of drip losses, bulls came back with a bit of a flourish to finish the week on a positive note.
The Semiconductor Index didn't offer bears a sniff of an opportunity. The inverse hammer from Thursday could have delivered a short position had it undercut the Thursday low, but this didn't happen; instead, it just fell shy of clearing 652 - the July swing high. A break of 652 is looking more likely for the week ahead. Watch for a new consolidation handle off 652 resistance before the push higher.
Strength in semiconductors is helping to shape a small bullish flag in the Nasdaq. Friday closed with a bullish engulfing pattern which offers an upside follow through opportunity for Monday.
While the Russell 2000 offered longs a chance at channel support, with a 'golden cross' between 20-day and 50-day MAs to attract buyers from the sidelines. This index is looking a good option for those seeking further gains.
The S&P came 3 points shy of a tag of 1,987. However, this area is looking like good support with bulls well placed to press their advantage.
The Dow broke through from its handle, and unlike the S&P it did take out the July swing high. Note the growing relative strength against the Nasdaq 100, an index it has under-performed since May. A flight to safety about to begin?
For Monday, longs have a choice of indices to work with: from the channel bounce in the Russell 2000, to the 'bull flag' breakout in the Dow. It's all to play for.
---
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!
The Semiconductor Index didn't offer bears a sniff of an opportunity. The inverse hammer from Thursday could have delivered a short position had it undercut the Thursday low, but this didn't happen; instead, it just fell shy of clearing 652 - the July swing high. A break of 652 is looking more likely for the week ahead. Watch for a new consolidation handle off 652 resistance before the push higher.
Strength in semiconductors is helping to shape a small bullish flag in the Nasdaq. Friday closed with a bullish engulfing pattern which offers an upside follow through opportunity for Monday.
While the Russell 2000 offered longs a chance at channel support, with a 'golden cross' between 20-day and 50-day MAs to attract buyers from the sidelines. This index is looking a good option for those seeking further gains.
The S&P came 3 points shy of a tag of 1,987. However, this area is looking like good support with bulls well placed to press their advantage.
The Dow broke through from its handle, and unlike the S&P it did take out the July swing high. Note the growing relative strength against the Nasdaq 100, an index it has under-performed since May. A flight to safety about to begin?
For Monday, longs have a choice of indices to work with: from the channel bounce in the Russell 2000, to the 'bull flag' breakout in the Dow. It's all to play for.
---
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!
