S&P Breakout Holds

Friday's action was good for what didn't happen. Trading was muted, with action trading inside very narrow ranges, different to what had happened the day before. The S&P probably came out the best of it as Friday's action held Thursday's break of 2115.  Watch Monday's premarket action closely. Assuming no damage in the Europe or Asian session there is a good chance bulls could be let off the shackles. Ideally, one would want an open above 2115 to set the tone.


The Nasdaq hasn't yet mounted a challenge of' 5,120. Bears looking for a reversal head-and-shoulder pattern would not want to see a push above 5,063 as this would negate the pattern. Bulls will have the MACD trigger 'buy' to work off.


The Russell 2000 had already delivered a clear channel breakout, but Friday's trading marked a rejection of the 50-day MA. However, bulls also got a MACD trigger 'buy', which gives a fresh opportunity for a new moving average challenge.


The Semiconductor Index is working off converged support of 704, 50-day MA and declining resistance. It's nicely set for Monday.


Next week could be the time bulls finally take indices out of their 4-month trading ranges and keep this six year rally ticking.

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

Share on StockTwits

---

Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.

Follow Me on Twitter




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.

JOIN ZIGNALS TODAY - IT'S FREE!

Popular posts from this blog

"Inverse Hammer" on Russell 2000 Breakout

Image
It was a mixed day for indices with the first indication of a top for the current advance with reversal candlesticks coming into play off opening gaps in markets. The Russell 2000 is looking the most vulnerable as it finally manages to break past the June swing high. With the 'inverse hammer' we have the risk of a possible gap down Tuesday, which would result in an 'evening star' and a likely "bull trap" - feeding into the likelihood of a larger sell-off. 
Read more

'Bear Traps' for the Nasdaq and S&P as Russell 2000 holds above support

Image
Buying in the Nasdaq and S&P delivered important 'bear traps' which in part, probably fueled today's gap highers in these indices. There is still alot of work for bulls to do, not least drive breaks of downward channels - not to mention, clear the first of the key moving averages in the 20-day. But it does give indices some respite from the grinding selling of the last couple of months.  The buying in the Nasdaq didn't register as accumulation, but there is a slow improvement in the technical picture with an upcoming 'buy' in the MACD.
Read more

Bullish Engulfing Patterns Across Russell 2000, S&P and Nasdaq

Image
Will today be the day markets get their latest swing low?  The Russell 2000 continues to be the index to offer most for bulls as support of $162.50 held firm.  The large white candlestick was supported by strong buying volume, but if anything, today's candlestick was *too* big and is vulnerable to getting pegged back tomorrow.  Technicals in the Russell 2000 weren't vastly improved by today's buying.  The MACD still has its 'buy' trigger but didn't advance much. On-Balance-Volume has been trending down throughout September and October and today's buying, while welcome, didn't make a huge dent in that trend.  The one real positive for this index is the continued improvement in relative performance to the Nasdaq and S&P.
Read more

Archive

Show more