Tuesday, January 05, 2016

Little Change in Markets

There was to be no follow through as US markets survived the Asian session. It was a relatively calm day with markets heading into NFP data at the end of the week.  What was said yesterday remains true today: markets lost support and are in a battle to retain it.

The S&P managed to close a little higher, but the question of overhead supply remains.

The Nasdaq sticks to 4,900 support on lighter volume.

The Semiconductor Index is also fighting a gap breakdown of support.

The Russell 2000 experienced a wide range day, but finished with a similar close to yesterday.

Shorts will be looking to attack rallies. Longs may look to trade the ranges; for example, buying 4,900 in the Nasdaq and selling at 5,100.

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.