Second Consolidation Day

A solid Friday kept indices at the business end of last week's gains.  Tech indices had the best of it, closing with small gains.  This was enough to return a 'buy' trigger in On-Balance-Volume.

The Dow is knocking on the door of a breakout with 16,500 resistance. The concern is the downward trend in On-Balance-Volume, which is holding to distribution since mid-December.

The Russell 2000 held to its 'bear trap' and is nicely positioned for a follow through higher. Look for a test of the 50-day MA this week.

The semiconductor index reversed the continuation breakdown and is well positioned to take advantage of the bullish divergence between the index and its MACD and CCI.

Tomorrow will be about maintaining the gains of last week and not challenging the range of the double bottom.

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, and Product Development Manager for I also trade on eToro and can be copied for free.


Popular posts from this blog

S&P "Bull Trap"?

"Black Candlesticks" are a concern for the S&P and Nasdaq

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


Show more