Markets Stabilise
Early morning selling was reversed by the close to leave markets in a stable position and their rallies intact.
For the S&P, the risk of a 'bull trap' was negated with a return to support on higher volume accumulation. The recovery wasn't enough to reverse the MACD trigger 'sell' but any upside tomorrow would probably be enough to trigger a new 'buy' signal in this indicator.
The Nasdaq is some way from testing nearest support which will keep some technical traders away. Opportunists may see today's action as a pullback 'buy'. It's not a long-term buying opportunity but a trade to rising channel resistance may still be in the offering. There is a 'sell' in On-Balance-Volume to mute today's action.
The Russell 2000 remains in its 'bull flag' formation awaiting a cue to break the consolidation. A test of the 50-day MA looks a good opportunity to spark such a breakout
The Semiconductor Index didn't lose ground but its ascent is running a very tight rally. The index could do with a pullback, preferably back to the 50-day MA. Current holders have no reason to sell yet.
For today's action to mark a swing low there can't be any persistent move into today's trading range; anything which finishes below today's close will likely undercut the low and spark an acceleration in a quest to seek stronger support.
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 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.
For the S&P, the risk of a 'bull trap' was negated with a return to support on higher volume accumulation. The recovery wasn't enough to reverse the MACD trigger 'sell' but any upside tomorrow would probably be enough to trigger a new 'buy' signal in this indicator.
The Nasdaq is some way from testing nearest support which will keep some technical traders away. Opportunists may see today's action as a pullback 'buy'. It's not a long-term buying opportunity but a trade to rising channel resistance may still be in the offering. There is a 'sell' in On-Balance-Volume to mute today's action.
The Russell 2000 remains in its 'bull flag' formation awaiting a cue to break the consolidation. A test of the 50-day MA looks a good opportunity to spark such a breakout
The Semiconductor Index didn't lose ground but its ascent is running a very tight rally. The index could do with a pullback, preferably back to the 50-day MA. Current holders have no reason to sell yet.
For today's action to mark a swing low there can't be any persistent move into today's trading range; anything which finishes below today's close will likely undercut the low and spark an acceleration in a quest to seek stronger support.
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.
