Courtesy of Declan.
Tuesday delivered another shift with sellers coming back, although not to the same extent as Monday’s buying. The net result was to leave trading ranges in key markets. Until there is a break we won’t know where the nest move will come but it will keep people on the sidelines until there is a resolution.
The Nasdaq is still holding its breakout support (and 50-day MA). Volume has dropped into the July 4th holiday but no directional move yet.
The Russell 2000 managed to run counter to other indices with a small gain. The 50-day MA is still support and more importantly is above prior price congestion. Unlike Tech and Large Caps, this is shaping up as a swing low and is giving longs a trading opportunity.
For tomorrow, trends have to be established. The Russell 2000 is the one closest to doing so. Any existing trades – long or short – can be held until price action forces them out.
You’ve now read my opinion, next read Douglas’ blog.
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