Stall in Decline

The good news for bulls was the lack of follow through on the selling. An argument could be made for bullish harami doji in some key indices with stops on a loss of yesterday's lows.

The Semiconductor Index held on to breakout support in what looked to be a successful defense by traders in what could still be a pullback buying opportunity. There was a MACD trigger 'sell' which was a follow-through from Friday - leaving only stochastics in the green. However, relative performance remains in bulls favor. Long opportunities at 1,395 support with stops on a loss of 1,375.

The Dow Jones still has to reverse Friday's breakdown and is holding to the MACD 'sell' trigger. Shorts can play this index with risk measured on a close above 25,000.

The Russell 2000 didn't fall to challenge 1,560 or converged 20-day and 50-day MAs but did finish with a bullish harami cross which itself is a potential buying opportunity.

For tomorrrow, stick with the current strategy; longs focus on the Rusell 2000 and Semiconductors, shorts focus on the Dow Industrials.

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.

Share on StockTwits

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.

Popular posts from this blog

Bull Flags for Nasdaq and S&P

"Inverse Hammer" on Russell 2000 Breakout

'Bear Traps' for the Nasdaq and S&P as Russell 2000 holds above support


Show more