Wednesday, April 25, 2018

S&P To Test 200-day MA

After yesterday's selling today's late recovery was a chance for bulls to catch some breadth.

The S&P came close to tagging the 200-day MA on the intraday low. The index is on a path to the lower channel. There was no technical change and relative performance remains weak.

The Nasdaq stalled mid-decline. Today's doji did not appear at a natural support level and the 200-day MA still looks the better support test but aggressive longs may try fish for a position here with a stop on a loss of 6,926.

The Russell 2000 spent a second-day trading at 20-day and 50-day MAs. There may be a chance to catch shorts on the hop if there is a move above 1,555 given the expectation for a move to triangle support.

Interesting mix of bullish and bearish signals. The Dow finished with a tweezer low just inside the downward channel; this is typically a bullish set-up but is countered by a return to net bearish technicals.

Even the Semiconductor Index did enough to hang on to its 200-day MA. Longs can also look for opportunities here.

For tomorrow, look for long opportunities in the Semiconductor Index, Russell 2000, S&P and Dow Jones Industrial Average.

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.