It wasn't all good news. The Russell 2000 took a big hit as rising channel support was broken in a decisive move lower. The index finished just below its 50-day MA, which is still a possible support level. Technicals are mixed but there may be enough support to see the 200-day MA hold as support if the 50-day MA don't.
The Nasdaq also finished down at its 50-day MA but in doing so left a 'bull trap'; shorts will look to attack rallies back to 7,800. Volume dropped a little but there were bearish technicals for +DI/-DI, On-Balance-Volume and MACD. On Monday, don't be surprised if there is an intraday spike low down to the 200-day MA but a close above 7,737.
Not a whole lot to add for the S&P, the index is holding within its rising channel and while it lost ground Friday it didn't come near any major support levels.
However, the Dow Jones Industrial Average is at channel resistance for what looks like a shorting opportunity. Technicals are all positive so a breakout is perhaps favored.
You've now read my opinion, next read Douglas' blog.
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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.
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