Flat Day

Semiconductors were able to make back some of yesterday's heavy losses, but other indices were little changed.

Semiconductors have clawed back nearly 1% and are working off a potential support level of 660. There is a break of rising support in the CCI, which along with continued losses in relative strength, suggests bulls are not out of the woods yet.

But there wasn't much to say about other indices. The S&P experienced higher volume churning on a doji topping a rally. Technicals are all in the green.

The Nasdaq experienced an inside day on a doji, while holding above 4,900. This index could go either way based on today's action. Look to Semiconductor's for leads.

The Russell 2000 is tagging upper channel resistance without breaking through. It also hasn't cleared Rate-of-Change resistance of the zero line either. However, it did manage to put a little more distance from the 200-day MA.

For tomorrow, watch for a break of today's high/low range for direction in the markets. Can the Semiconductor Index continue to recover the ground it lost yesterday? Shorts will probably keep a close eye on the Russell 2000; although I do have a short trade in the $IWM in my eToro account, which has me angling on a bias.

You've now read my opinion, next read Douglas' and Jani's.

I trade a small account on eToro, and invest using Ameritrade. If you would like to join me on eToro, register through the banner link and search for "fallond".

If you are new to spread betting, here is a guide on position size based on eToro's system.

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Dr. Declan Fallon is the Senior Market Technician for ChartDNA.com, and Product Development Manager for FirstDerivatives.com. I also trade on eToro and can be copied for free.

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