Resistance Boundaries Hold
There was some follow through to yesterday's buying, but resistance wasn't breached in newly defined channels and wedges. Will there be a 'sell the news' event tomorrow once the election is announced?
The S&P tagged its 50-day MA before it came back to rest under declining channel. Volume dropped for a second day, but there was a MACD trigger 'buy'.
The Nasdaq is back inside prior congestion where things could get tricky for bulls. Watch for a tag of the 50-day MA, this might be the cue for a short position.
The Russell 2000 also finished at wedge resistance. However, this downward angled wedge is typically bullish, so confirmation of the election result might be enough to deliver an upside breakout.
Obama's election was followed by a sell off. A Trump election would certainly see a sell off, but even a Clinton victory might see some buyers remorse and a little easing of the gains over the past couple of days. Real upside momentum will only kick in if new 52-week highs can be posted, taking markets beyond the levels traded during the summer doldrums.
You've now read my opinion, next read Douglas' blog.
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.
The S&P tagged its 50-day MA before it came back to rest under declining channel. Volume dropped for a second day, but there was a MACD trigger 'buy'.
The Nasdaq is back inside prior congestion where things could get tricky for bulls. Watch for a tag of the 50-day MA, this might be the cue for a short position.
The Russell 2000 also finished at wedge resistance. However, this downward angled wedge is typically bullish, so confirmation of the election result might be enough to deliver an upside breakout.
Obama's election was followed by a sell off. A Trump election would certainly see a sell off, but even a Clinton victory might see some buyers remorse and a little easing of the gains over the past couple of days. Real upside momentum will only kick in if new 52-week highs can be posted, taking markets beyond the levels traded during the summer doldrums.
You've now read my opinion, next read Douglas' blog.
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.