Resistance Test Due This Week for S&P as Semiconductors Prime For Breakout
We have the Russell 2000 caught in a long term trading range, and despite registering a gain it hasn't changed the larger picture in favor of either bulls or bears. The only index at a point of inflection is the S&P. After breaking below the bearish wedge it now finds itself rallying back to former support turned resistance. There are flickers of good news; intermediate stochastics returned above the bullish mid-line and Friday's close finished above the 50-day MA.
The Russell 2000 closed with a doji inside Thursday's white candlestick. If this was an overbought market we would be looking at a bearsh harami cross but stochastics are at a mid-level, just like the index itself.
The Nasdaq is at least looking upwards having successfully defended support marked by the July and August swing lows. Technicals are a little mixed with Stochastics and On-Balance-Volume generating 'buy' signals but other technicals are bearish.
You've now read my opinion, next read Douglas' blog.
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