Stock Market Commentary: Resistance Remains
Courtesy of Fallond Stock Picks
It was a day when upward pressures on resistance gave way to increased selling. The Nasdaq gapped against bulls – enough to see a new MACD trigger ‘sell’ – but not enough to see a break of 20-day MA support. To add insult to injury there was a confirmed distribution day to boot. I have redrawn resistance at 2,201 in what looks to be a double (triple?) top.
The Dow is under pressure with prices back at the lower end of its 3-week range with the 20-day MA protecting it from another 300 point drop back to its 50-day MA
The bad news for Nasdaq bulls is the loss of 20-day MA support in the Nasdaq 100. Also worrying is how prices are working closer to support than rallying up towards channel resistance.
Semiconductors failed to crack 337 resistance. Note MACD up against resistance with CCI weakening; looking like a shorting opportunity with a stop above 343.
It would appear bears have the better risk:reward options at this point – it’s not looking like Santa has much juice in the tank. Bulls should perhaps best look to the dollar to continue its run for a while.
