Courtesy of Declan Fallon
The Nasdaq 100 also experienced the Apple drop, but it’s more range bound than the Nasdaq. Technicals shifted negative with ‘sell’ triggers in the MACD and On-Balance-Volume. However, until 2,700 breaks the overall action remains bullish.
The S&P churned, but technicals held their ground. Note, the 10% threshold to shift towards profit taking (selling covered calls) is 1,534. A couple more 1% days will be enough to do it. It’s getting close, but it’s not there yet.
The Russell 2000 has already reached the 10% threshold. Mean reversion will kick in soon.
For Friday, prepare to take profits in the Russell 2000, with the S&P likely to follow soon. It will be important for the Nasdaq to hang on to its breakout for other indices to maintain their strength.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.
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