Dow Edges A Closing Breakout
Holiday trading action continues with little on offer. The Dow followed action of its peers by edging higher (on a closing basis) of July highs. Technicals haven't quite confirmed with both MACD and OBV still in the red.
One index which has offered plenty for bulls has been the Nasdaq 100. Brexit treated this index particularly well with no real pullback since those lows. Trend followers should be very pleased with the bullish action with no reason to be a seller yet.
Helping the Nasdaq 100 has been the Semiconductor Index. It did manage to break from a 'bull flag'. If there is a concern it's that it has slowed since coming out of the flag formation. The bearish black candlestick marking the July high still dominates. Technicals are mixed. If there is going to be a bearish turn in the markets then the Semiconductor Index could be the one to provide it.
For those following my #sectorbreadth analysis will have seen a 'buy' signal for Utilities (oversold). It's not a strong signal because the S&P is not oversold, but it may play as a nice pullback play.
Little more to say on this - let's see what tomorrow brings.
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.
One index which has offered plenty for bulls has been the Nasdaq 100. Brexit treated this index particularly well with no real pullback since those lows. Trend followers should be very pleased with the bullish action with no reason to be a seller yet.
Helping the Nasdaq 100 has been the Semiconductor Index. It did manage to break from a 'bull flag'. If there is a concern it's that it has slowed since coming out of the flag formation. The bearish black candlestick marking the July high still dominates. Technicals are mixed. If there is going to be a bearish turn in the markets then the Semiconductor Index could be the one to provide it.
For those following my #sectorbreadth analysis will have seen a 'buy' signal for Utilities (oversold). It's not a strong signal because the S&P is not oversold, but it may play as a nice pullback play.
Little more to say on this - let's see what tomorrow brings.
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.
