Pause Prior to Resistance Challenge

With the swings we have seen since the New Year rolled in, it was no surprise to see small losses today after two good days. This leaves indices nicely positioned to break out of the various trading ranges in play.

The S&P has to get past what looks to be strong resistance around 2,064 before it can make a challenge on 2,093. The former might prove to be the bigger challenge than the latter. Technicals are a little mixed, with On-Balance-Volume whipsawing back to a 'sell' trigger.

The Nasdaq experienced technical distribution as it works support at the 50-day MA. Of the indices, it's furthest from resistance.

The Dow finished with a spinning top right below channel resistance. Tomorrow offers a good chance for a breakout.

The Russell 2000 is ready to pop 1,200 tomorrow. Like other indices, the MACD is on a trigger 'buy'. Can tomorrow deliver? Also in play is net positive bullish momentum (stochastics above 50).

We will see tomorrow..

You've now read my opinion, next read Douglas' and Jani's.

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


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