Courtesy of Declan.
Glass Half Full or Half Empty? There wasn’t a whole lot to today’s action. The Russell 2000 had the worst of it, but it still managed to stage a small recovery into the close. The index finished above support with technicals negative. A bullish rally would nicely set up a swing low and could see a run to test 1,414. Shorts would want to keep stops tight (measure risk) to the 50-day MA at 1,376.
There wasn’t a whole lot to say about other indices. Most finished slightly down on (significantly) lighter volume, with indecision the real outcome of today’s action.
The S&P continues to linger around its 20-day MA. Tehnicals were unchanged with positive accumulation On-Balance-Volume offset by the ‘sell’ trigger in MACD.
And it was a similar story for the Nasdaq, although the index is outperforming the S&P, with the S&P outperforming the Russell 2000. While my weekend post pointed to breadth weakness for the Nasdaq, Nasdaq price action sides more in favour of bulls and buyers.
For tomorrow, bulls are likely to try and push on after indices (the Russell 2000 in particular) didn’t see any acceleration in selling. What selling there was came on light volume. If buying, stops go on a break of (last week’s) swing lows.
You’ve now read my opinion, next read Douglas’ blog.
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