The Nasdaq finished on breakout support. However, today's candlestick finished with a bearish engulfing pattern (weakened, because traditionally it's only viewed as bearish when overbought).
The one index which I thought could hang on was the Russell 2000. It broke below range support, and its 200-day MA, leaving Fib retracements as the next support levels to work with.
The Semiconductor Index is fast approaching breakout support. The rate of advance is looking a little quick for it to be a bullish retracement, so look for the next bounce to be sold.
Tuesday is another opportunity for buyers to make a stance. I would be looking for an afternoon buying surge, but keep any eye on Fib levels - at which tomorrow's open will offer Fib level support for the S&P and Russell 2000.
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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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