Minor Losses But Distribution Returns

The S&P dropped just over a point, but finished above 2119 support. Today's action holds the gain and remains in bullish mode. Technicals are bullish, although the relative performance against the Russell 2000 has dropped off markedly, which is better for the broader rally, even if bad for the S&P in the near term.

The Nasdaq had a modestly lower close. No real change here.

It was a similar experience for the Russell 2000. Small losses for the day remained confined to the upper range of yesterday's trading action.

For tomorrow, watch for tight pre-market action. This would create a bullish handle (on an hourly time interval), offering a low risk swing trade. Preference is for upside, but don't be caught out if things take a larger turn lower.

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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