Preliminary Breakouts?
The larger picture still holds to trading ranges, but the coiling action in the S&P suggests an upside breakout is in the making. It qualified on the basis of price, but volume was disappointing. Bulls will be happy, but tomorrow needs volume buying to suggest this breakout is genuine.
The Nasdaq did a little better. It did manage a register an accumulation day, but the uptick was modest. The July swing high is next up, but resistance at 5,096 has to be navigated first.
The Russell 2000 returned to its 200-day MA. There is converged resistance at 1,238 which looks a magnet for a test. It will be interesting to see if a rally can repair the significant technical damage done to this index.
The Semiconductor Index continues to shape its bullish wedge, offering excellent value to those who purchased it at the open today.
Tomorrow will be about holding today's gains and adding some volume to the mix. Shorts will feel some pressure, but the real buyers aren't willing to commit yet.
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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The Nasdaq did a little better. It did manage a register an accumulation day, but the uptick was modest. The July swing high is next up, but resistance at 5,096 has to be navigated first.
The Russell 2000 returned to its 200-day MA. There is converged resistance at 1,238 which looks a magnet for a test. It will be interesting to see if a rally can repair the significant technical damage done to this index.
The Semiconductor Index continues to shape its bullish wedge, offering excellent value to those who purchased it at the open today.
Tomorrow will be about holding today's gains and adding some volume to the mix. Shorts will feel some pressure, but the real buyers aren't willing to commit yet.
You've now read my opinion, next read Douglas' and Jani's.
---
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!
