Bulls Struggle on Volume
There wasn't a whole lot of action in terms of price movement, but what action there was came on heavier volume and reflected a lack of buyer strength as they struggled to challenge last week's highs.
Of the indices, the Dow Jones flashed a 'bull trap' to join another in the Russell 2000:
The Russell 2000 wasn't able to close higher, leaving a spike high for the index. There is a play against the 'bull' and 'bear' trap, but this is looking more like a widening of the December-February trading range. Technicals are close to returning to a net bearish picture (when slow stochastics [39,1] drops below the 50 mid-line).
The Nasdaq is the strongest index and is enjoying solid relative performance against its peers. While today did finish with a bearish 'black' candlestick, it is best positioned to challenge last week highs and is a long way from turning into a 'bull trap'.
For tomorrow, bears should keep an eye on the Russell 2000 - which is struggling. Bulls can look to follow the trend in the Nasdaq, which is moving up nicely.
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 a blogger who trades for fun on eToro and can be copied for free. I invest in my pension fund as a buy-and-hold.
Of the indices, the Dow Jones flashed a 'bull trap' to join another in the Russell 2000:
The Russell 2000 wasn't able to close higher, leaving a spike high for the index. There is a play against the 'bull' and 'bear' trap, but this is looking more like a widening of the December-February trading range. Technicals are close to returning to a net bearish picture (when slow stochastics [39,1] drops below the 50 mid-line).
The Nasdaq is the strongest index and is enjoying solid relative performance against its peers. While today did finish with a bearish 'black' candlestick, it is best positioned to challenge last week highs and is a long way from turning into a 'bull trap'.
For tomorrow, bears should keep an eye on the Russell 2000 - which is struggling. Bulls can look to follow the trend in the Nasdaq, which is moving up nicely.
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 a blogger who trades for fun on eToro and can be copied for free. I invest in my pension fund as a buy-and-hold.
