Strong Response From Bulls

It was looking rough for bulls when cash markets opened today, but a swift recovery helped drive markets back to their daily highs, and in the case of Large Caps are close to a new breakout. The S&P finished on lighter volume buying with a 'sell' trigger between +DI and -DI. Tomorrow is set up for a breakout.


The Nasdaq wasn't quite so lucky, but did find buyers at psychological 5000 support which is also breakout support.


The Nasdaq 100 tagged both wedge support and resistance over the last couple of days, but only one side can prevail. Which way will it go?


The Russell 2000 performed well, but it didn't recover the breakdown. And relative performance has swung sharply away from Small Caps in favour of Tech indices.


Tomorrow is a good opportunity for a bulls to press their advantage. Today's buying was a kick in the teeth for bears looking to squeeze weak hands from positions near market highs. Can they succeed?

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 Zignals.com, and Product Development Manager for ActivateClients.com. I do a weekly broadcast on Friday's at 13:30 GMT for Tradercast, covering indices, FX and gold, silver and oil - all are welcome! You can read what others are saying about Zignals on Investimonials.com.

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