Positive Start to Week
The Russell 2000 led the market out with a 1%+ gain as relative performance continued to gain ground; the next phase of the Small gap rally is well underway. This is good news for bulls looking for gains to continue throughout the summer.
It was a little more muted for the S&P. Volume was light and 2016 highs haven't been broken yet, but Friday's loss was reversed. The Head-and-Shoulder pattern looks well and truly cooked.
The Nasdaq almost closed above 2016 highs. Shorts may think this is a low risk opportunity, but given action in the Russell 2000 I suspect this will head higher.
The Semiconductor Index had looked bearish on Friday, and Monday followed through on this. It wasn't a big loss, but there may be more follow through in the morning session.
For tomorrow, look for more of the same - gains in lead indices and Russell 2000 in particular, losses in Semiconductors.
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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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.
It was a little more muted for the S&P. Volume was light and 2016 highs haven't been broken yet, but Friday's loss was reversed. The Head-and-Shoulder pattern looks well and truly cooked.
The Nasdaq almost closed above 2016 highs. Shorts may think this is a low risk opportunity, but given action in the Russell 2000 I suspect this will head higher.
The Semiconductor Index had looked bearish on Friday, and Monday followed through on this. It wasn't a big loss, but there may be more follow through in the morning session.
For tomorrow, look for more of the same - gains in lead indices and Russell 2000 in particular, losses in Semiconductors.
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.
