Further Minor Gains Extend Rallies

There wasn't much to today or Friday, but bulls kept the pressure on shorts in existing positions. The Russell 2000 had the best of the (modest) action, edging a breakout from the narrow, 6-day handle. A move to upper resistance remains favoured; watch for a 'bull trap' on an undercut of breakout support.


The S&P posted a modest gain, enough to push the boundaries of the fib range out, but little else.


The Nasdaq remains trading within its range, and above 4,601 support. The tight action is a swing trade opportunity on a break above/below resistance/support.


The Semiconductor Index continues to shape a handle above a measuring gap. The presence near handle support is a potential long opportunity, with a stop on a close of the gap. Action in this index favours an upside breakout.


Tomorrow is another day. Favored is a breakout in Tech indices, with continued gains in the Russell 2000; minor losses will quickly erase them, but not break the October rally.

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com, and Product Development Manager for ActivateClients.com. You can read what others are saying about Zignals on Investimonials.com.

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