Trading Ranges Dominant

Tuesday delivered another shift with sellers coming back, although not to the same extent as Monday's buying. The net result was to leave trading ranges in key markets. Until there is a break we won't know where the nest move will come but it will keep people on the sidelines until there is a resolution.

The Nasdaq is still holding its breakout support (and 50-day MA). Volume has dropped into the July 4th holiday but no directional move yet.

The Russell 2000 managed to run counter to other indices with a small gain.  The 50-day MA is still support and more importantly is above prior price congestion. Unlike Tech and Large Caps, this is shaping up as a swing low and is giving longs a trading opportunity.

For tomorrow, trends have to be established. The Russell 2000 is the one closest to doing so. Any existing trades - long or short - can be held until price action forces them out.

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

S&P "Bull Trap"?

"Black Candlesticks" are a concern for the S&P and Nasdaq

Round 2 for the bearish "black" candlestick in S&P and Nasdaq


Show more