Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Mixed Setups; Something for Bulls and Bears

Courtesy of Declan.

Markets started the day strong – challenging resistance – but were unable to press this advantage.  Many indices closed lower, leaving ‘black candlesticks’ which are typically bearish when formed at ‘swing highs’ but still favor weakness even in the absence of the swing high setup.




The ‘black candlestick’ for the Nasdaq at resistance suggests a move towards the 200-day MA but for this to happen there needs to be an immediate downside; any recovery has a strong chance of negating the ‘black candlestick’.






The S&P did not finish so weak. There was no ‘black candlestick’ but instead a low key doji  may offer itself as upside





The Russell 2000 is hugging its respective 20-day and 50-day MAs without rocking the boat either way. It may be edging in favor of bulls because its holding these moving averages – a strong start for Monday would open up for a challenge of triangle resistance and potentially negate the bearish wedge ‘bull trap’.





The Dow Jones Industrial Average is holding to its mini-tweezer low which set up the return above the downward channel – it’s a decent long setup with the 200-day MA also available for support; risk measured off the tweezer bottom. 





The Nasdaq 100 is on the bearish side of the fence.  The ‘black candlestick’ tagged declining resistance with the 50-day MA as additional resistance.





The weakest index is the Semiconductors Index. The index is not close to declining resistance (which other indices have tested or are close to testing), it’s struggling in its bounce off its 200-day MA, plus it reversed off long-term support – now resistance. A loss of 1,220 could see a rapid acceleration in its losses – on top of what it has already lost off its highs.





For tomorrow, shorts can focus on the Nasdaq, Nasdaq 100 and Semiconductor Index. Longs can look to the Dow Jones, S&P and potentially the Russell 2000; although the latter index can go either way.




You’ve now read my opinion, next read Douglas’ blog.




I trade a small account on eToro, and invest using Ameritrade. If you would like to join me on eToro, register through the banner link and search for “fallond”.




If you are new to spread betting, here is a guide on position size based on eToro’s system.






Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!