Sellers stick around for a second day

There was a bit of a hangover to Friday's selling with opening action pushing more downside. However, buyers were able to dig in at yesterday's lows. The S&P found support at 'bear trap' support at 2,072, although technicals are again net bearish. The real need is for the S&P to get out of its 2080/120 range.


The Nasdaq looks to have confirmed a break of wedge support, but it has held on to its 50-day MA. The next support target is the 200-day MA.


The Russell 2000 may have another 'bull trap' to navigate, although the channel hasn't enough touches to define it as a major channel. The 'bull trap' may just require a redrawing of the channel line.


The Nasdaq 100 is also playing with a break of wedge support while hanging on to 'bear trap' support.


Tomorrow may be the make or break day for buying the dip. Further losses will pull Large Caps away from levels where buyers were happy to step in. Tech indices could be looking at tests of May swing lows, while the Russell 2000 will be looking to hang on to its 50-day MA.

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

Round 2 for the bearish "black" candlestick in S&P and Nasdaq

Being "Right" but still losing...

Big bearish engulfing patterns as positive start negated

Archive

Show more