Nasdaq Threatening 'Bull Trap'
A second day of selling brought the indices back towards support. The index looking most vulnerable with the potential to 'bull trap' is the Nasdaq. I'm not sure enough damage has been done to confirm this but another day's selling would probably be enough.
The S&P flashed a 'sell' trigger in On-Balance-Volume which left it at former channel support. The index is effectively caught in a trading range which ranks recent selling as noise.
The Russell 2000 eased back from a challenge of all-time highs but not enough to reverse the earlier break of the swing high. Watch the index closely, buyers may find joy if there is a spike low towards 1,565. Shorts can fish around the next rally to 1,609 but don't be hanging on to short-side plays if there is a powerful push above 1,610.
Shorts playing the Dow Industrials may want to take partial profits on the test of rising 'bear flag' support. Things could get a whole lot better for shorts if there is another down day tomorrow - this would break 'flag' support and open up for a larger move lower.
The Semiconductor Index did well to make back early losses. This index looks the one to best reward bulls; moves down to 1,400 can be bought until there is a sustained close below 1,390.
For tomorrow, bears have the Dow Jones Industrial Average and possibly the Nasdaq to work with. Bulls can look to the Semiconductor Index and maybe the Russell 2000.
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.
The S&P flashed a 'sell' trigger in On-Balance-Volume which left it at former channel support. The index is effectively caught in a trading range which ranks recent selling as noise.
The Russell 2000 eased back from a challenge of all-time highs but not enough to reverse the earlier break of the swing high. Watch the index closely, buyers may find joy if there is a spike low towards 1,565. Shorts can fish around the next rally to 1,609 but don't be hanging on to short-side plays if there is a powerful push above 1,610.
Shorts playing the Dow Industrials may want to take partial profits on the test of rising 'bear flag' support. Things could get a whole lot better for shorts if there is another down day tomorrow - this would break 'flag' support and open up for a larger move lower.
The Semiconductor Index did well to make back early losses. This index looks the one to best reward bulls; moves down to 1,400 can be bought until there is a sustained close below 1,390.
For tomorrow, bears have the Dow Jones Industrial Average and possibly the Nasdaq to work with. Bulls can look to the Semiconductor Index and maybe the Russell 2000.
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.