Russell 2000 Under Pressure
During early afternoon trading it was looking like the Russell 2000 was going to break support and leave a 'bull trap'. While the 'bull trap' remains in play the loss of support hasn't been confirmed which would show a reversal. However, this is acting as a lead index and will determine what may come for the Nasdaq and S&P.
The Nasdaq tagged breakout support in what was a text book example of a breakout retest. This doesn't mean such support will hold, but it's a healthy play for those looking for higher prices.
The S&P is range bound and enjoyed a recovery today, but not enough to drive a break of resistance. Given action in the Russell 2000 it's unlikely to make that move higher, but if the Russell 2000 can hold support it may be able to lead higher.
For tomorrow, keep an eye on the Russell 2000. Small Caps are an important lead index, and what happens here will have relevance for other indices. There isn't much direction from Tech and Large Cap indices, so it's up to Small Caps to make the move.
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 Nasdaq tagged breakout support in what was a text book example of a breakout retest. This doesn't mean such support will hold, but it's a healthy play for those looking for higher prices.
The S&P is range bound and enjoyed a recovery today, but not enough to drive a break of resistance. Given action in the Russell 2000 it's unlikely to make that move higher, but if the Russell 2000 can hold support it may be able to lead higher.
For tomorrow, keep an eye on the Russell 2000. Small Caps are an important lead index, and what happens here will have relevance for other indices. There isn't much direction from Tech and Large Cap indices, so it's up to Small Caps to make the move.
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.
