Indices Diverge
Apple's disappointment may have previously caused more of a reaction in the broader market, but today's response - outside of Tech - was muted. However, there was a divergence between Tech, and Large and Small Cap indices.
The S&P registered a small gain as 2,075 support held for a third day. Action has been very tight, but attempts on breaking 2,075 have been rebuffed, suggesting bulls are more likely to succeed in challenging and breaking all-time highs.
The Apple story has clouded things a little. The loss was enough to push the index away from 4,900 support (but not the 200-day MA) on higher volume distribution. There was also a bearish push in Rate-of-Change, along with an increase in the relative underperformance of this index to the S&P. This would suggest bears have the edge, but another 'bear trap' would not surprise me.
The reason for this optimism comes from the Semiconductor Index which had a solid day and is shaping a bullish consolidation. If this breaks higher it will send out a very bullish message for all markets.
Small Caps have been knocking on the door of an upside break from a rising consolidation. They have already surpassed the 200-day MA. Only Rate-of-Change is giving bears any reason for hope - and hope in trading is never a good thing.
Tomorrow, keep an eye on Semiconductors; an upside break will likely bring other indices with it. A 'value buy' in the Nasdaq / Nasdaq 100 might be the prudent play.
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.
---
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 for ChartDNA.com, and Product Development Manager for FirstDerivatives.com. I also trade on eToro and can be copied for free.
The S&P registered a small gain as 2,075 support held for a third day. Action has been very tight, but attempts on breaking 2,075 have been rebuffed, suggesting bulls are more likely to succeed in challenging and breaking all-time highs.
The Apple story has clouded things a little. The loss was enough to push the index away from 4,900 support (but not the 200-day MA) on higher volume distribution. There was also a bearish push in Rate-of-Change, along with an increase in the relative underperformance of this index to the S&P. This would suggest bears have the edge, but another 'bear trap' would not surprise me.
The reason for this optimism comes from the Semiconductor Index which had a solid day and is shaping a bullish consolidation. If this breaks higher it will send out a very bullish message for all markets.
Small Caps have been knocking on the door of an upside break from a rising consolidation. They have already surpassed the 200-day MA. Only Rate-of-Change is giving bears any reason for hope - and hope in trading is never a good thing.
Tomorrow, keep an eye on Semiconductors; an upside break will likely bring other indices with it. A 'value buy' in the Nasdaq / Nasdaq 100 might be the prudent play.
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.
---
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 for ChartDNA.com, and Product Development Manager for FirstDerivatives.com. I also trade on eToro and can be copied for free.
