Popular posts from this blog

Bulls Were Unable To Build On Morning Optimism

Image
After the Fed driven sell-off that delivered support breaks for some of the indices there was an attempt by bulls to stage a bounce, but traders weren't able to build on the sizable opening gaps, and some indices drifted lower by the close. The Russell 2000 ($IWM) lost the most ground off the open. However, today's close was enough to regain support, leaving yesterday's action as a potential 'bear trap'. Technicals are net bearish oversold. And today's buying volume was below yesterday's selling (distribution). The S&P finished the day where it started, which is also 20-day MA resistance. Aggressive traders could go with a swing trade as the next move could be sizable (particularly if the move is higher). The Nasdaq is dominated by the trading range, but within that we have a consolidation triangle. As it stands, the index is at resistance of this triangle, and given recent selling volume I would be looking for a move to close today...
Read more

Russell 2000 ($IWM) Rallies Back But Resistance Remains

It has been a volatile past few days for indices, but the bigger picture remains unchanged. The Russell 2000 ($IWM) has struggled to regain its 200-day MA despite today's big gain. Today's buying registered as accumulation but technicals are still net bearish, and the 20-day MA is on course to cut below its 200-day MA. However, if we see a close above 20-day MA and 200-day MA it will give skew things back in bulls favor (buying subsequent dips). Aggressive players could look to buy any subsequent drop below $272, with a stop on a loss of $270.

The equal-weighted S&P closed above the 50-day MA, but it hasn't quite negated the "spinning top" that had initially spiked to the 50-day MA. If it does so it will open up for a challenge of 8,800. Stochastics haven't breached the midline which is another marker for bears, but let price be your guide.

It was a similar story for the Dow Jones Industrial Average, although it had managed to close above the spinning top which negates its bearishness. Technicals are still mixed and stochastics have not crossed above the bullish midline, so bulls aren't totally out of the woods yet.

The S&P closed with a candle offering a spike high that is at risk of marking a move lower. Technicals are close to turning net negative, but there is still a chance for stochastics to hold the midline, which means buying rather than selling might be the opportune play here.

The Nasdaq closed with a more neutral spinning top, but is dealing with bearish net technicals. This is the one index which hasn't really picked up on the more bullish sentiment enjoyed by other indices today. I would be looking for further losses from here.

Bitcoin last week was looking to challenge the spike low but the past two days have seen this sentiment shift and it again looks ready to move higher. If you are not holding a long position it may be best to wait for a close above the 20-day MA, but long term holders can continue to hold as right-hand-base development remains on course. Note how stochastics are holding the bullish mid-line.

Things aren't as bearish as they were over the weekend, but we are not out of the woods yet. The Bitcoin short trade looks done, but can be switched long. Other markets are a wait-and-see, although the equal-weighted S&P, weighted S&P, and Dow Industrial Average are looking more like long trades.

---

Follow Me on Twitter


Investments are held in a pension fund on a buy-and-hold strategy.

Popular posts from this blog

Bulls Were Unable To Build On Morning Optimism

Image
After the Fed driven sell-off that delivered support breaks for some of the indices there was an attempt by bulls to stage a bounce, but traders weren't able to build on the sizable opening gaps, and some indices drifted lower by the close. The Russell 2000 ($IWM) lost the most ground off the open. However, today's close was enough to regain support, leaving yesterday's action as a potential 'bear trap'. Technicals are net bearish oversold. And today's buying volume was below yesterday's selling (distribution). The S&P finished the day where it started, which is also 20-day MA resistance. Aggressive traders could go with a swing trade as the next move could be sizable (particularly if the move is higher). The Nasdaq is dominated by the trading range, but within that we have a consolidation triangle. As it stands, the index is at resistance of this triangle, and given recent selling volume I would be looking for a move to close today...
Read more

...And Then Sellers Pushed Hard

Image
I don't know if the equal-weighted S&P is a harbringer of things to come for other indices, but a second day of heavy selling has undercut the 50-day MA, and breakout support. Technicals shifted net bearish with a worrying undercut of mid-level stochastics. The next support level is down at 8,600s, but I want to see oversold stochastics on such a test. However, the ease at which existing support was lost is a concern.
Read more

Selling Pressure Continues - Russell 2000 ($IWM) Net Bearish

Image
Indices continued to drift with the Russell 2000 ($IWM) experiencing the largest loss. Technicals for the Russell 2000 are net bearish with the index on course to test $287. Both 20-day and 50-day MAs are now cleanly undercut. Trading volume increased to register a second day of distribution in a row. Momentum has been in a bull cycle since April. It waivered in July before it recovered, but it's already in the same position now as it was then, with no price support nearby; further losses are likely.
Read more

Archive

Show more