Markets Struggle to Rally; What Next?
It has been a tricky last few days. The bounce in the Russell 2000 off the 20-day MA and key support of 1,705 has struggled to follow through on what should have been a strong support test. Technicals are a bit of a mixed bag with 'sell' triggers in +DI/-DI and MACD. Today's 'doji/hammer' is perhaps the last chance saloon to see something happen here; a lower close Thursday will likely see a break of 1,705.
The S&P is running along accelerated channel support but the sequence of doji despite higher volume accumulation suggests a lack of interest on the part of buyers. Until support breaks bulls have it but it's not a convincing 'buy' at this point.
The Semiconductor Index enjoyed a big bullish 'hammer' on the 200-day MA but it doing so it gapped below the consolidation. Tomorrow needs a rally - one which would create a bullish morning star. Any losses tomorrow and a breakdown would be confirmed.
The Nasdaq did a little better than the Semiconductor Index holding channel support. The bounce hasn't yet emerged but it's not too late for this to happen.
For tomorrow, look for a day of gains, one which would confirm the swing lows and act as a meaningful start point for a rally. Losses tomorrow would open up for larger declines as summer rallies would be confined to history. From a trade persepective, it's a hold but if you insist on buying then use a loss of Friday's lows as a stop as it may struggle with a drop into prior price action.
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.
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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.
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Dr. Declan Fallon is a blogger who trades for education on eToro and can be copied for free. Investments are held in a pension fund as buy-and-hold.
The S&P is running along accelerated channel support but the sequence of doji despite higher volume accumulation suggests a lack of interest on the part of buyers. Until support breaks bulls have it but it's not a convincing 'buy' at this point.
The Semiconductor Index enjoyed a big bullish 'hammer' on the 200-day MA but it doing so it gapped below the consolidation. Tomorrow needs a rally - one which would create a bullish morning star. Any losses tomorrow and a breakdown would be confirmed.
The Nasdaq did a little better than the Semiconductor Index holding channel support. The bounce hasn't yet emerged but it's not too late for this to happen.
For tomorrow, look for a day of gains, one which would confirm the swing lows and act as a meaningful start point for a rally. Losses tomorrow would open up for larger declines as summer rallies would be confined to history. From a trade persepective, it's a hold but if you insist on buying then use a loss of Friday's lows as a stop as it may struggle with a drop into prior price action.
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 education on eToro and can be copied for free. Investments are held in a pension fund as buy-and-hold.
