A Late Flurry Rewards Bulls

Trader's interpretation of a Fed interest rate hike first sent buyers running, then shorts were left scrambling as bulls took control. The Russell 2000 had the best of the action after a long period of under performance. It gained almost 3% with a channel breakout. It's looking good for a push to the 200-day MA.

The S&P built on its rally off its 200-day MA. Technicals are firmly bullish and volume registered as accumulation.

The Nasdaq also cleared tight action and is aiming for July highs. Technicals are also performing well and today's gains help advance the relative performance of the index against its peers. There could be more to come.

The Nasdaq 100 tagged resistance on higher volume accumulation. I've been attacking this as a short on a number of occasions, all without success.  The presence of resistance will offer another opportunity, but don't be surprised if there is a stop out.

Bulls had another successful day and will be feeling confident having squeezed shorts on every attempt to push markets lower. As one of those shorts, the next major attack level is the July high. The Nasdaq 100 is already there, but other indices have room to run. How much willingness there is on shorts will become evident tomorrow. Watch the Nasdaq 100 closely.

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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