There wasn't a whole lot to work with Tuesday. The only index showing potential was the Semiconductor Index; it managed to clear congestion from the last four days as it tagged resistance. While the resistance tag may be viewed as a shorting opportunity the move looks like one to drive a break of the triangle.

Before my vacation I had noted three indices to watch  undergoing support tests: Semiconductors, Nasdaq and Dow Jones Industrial Average had all presented buying opportunities. However, I had also thought these rallies would stall out when they got back to resistance - this did not prove to be the case.  With the exception of the Semiconductor Index (which did rally), all indices managed to post new highs for the summer. The Semiconductor Index is the one which may present a profit taking opportunity (or a potential shorting chance) as it approaches triangle resistance.  Given both the Nasdaq and Nasdaq 100 are at new multi-year highs and technicals for the Semiconductor Index are net bullish - and this rally begun from a 'bear trap' - chances are this will continue beyond 1,410 and go to challenge 1,440 and likely more.

On holidays until September 1st. How will the market be when I return? If you haven’t already  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. .

Sellers returned today as bulls and bears tussle for control. With the constant back-and-forth, the short-term moves become more difficult to define, making it necessary to take a step back and look at the big picture. The Semiconductor Index is at one such juncture. The index finished the day at rising support defined by the April and July swing lows. Wednesday's spike low illustrates underlying demand - offering a buying opportunity; stops on a loss of 1,321. The initial target is 1,420 but a larger breakout could deliver a lot more. The only negative on the day was the net bearish turn in technicals as intermediate-term stochastics [39,1] crossed below the mid-line into bearish territory.  However, a rally to triangle resistance would likely reverse this.