Dow Does All The Leg Work
Declan Fallon | Sep 21, 2018 12:39AM ET
Solid gains across the board but it was holders of Dow Jones stocks which had the best of the action, continuing a sequence of gains triggered earlier this week. The Dow Jones Industrial Average will soon be dealing with channel resistance but not until Friday if not early next week. Technials are good. The benefit of this strength was seen elsewhere too
The Russell 2000 looks to have done enough for a new 'buy' signal. Yesterday's decline didn't undercut the 50-day MA and today's advance looks ready to take it up towards newly drawn channel resistance. Risk for this trade would be measured on a loss of 1,700 so you would be looking for an ideal target of 1,780 but channel resistance looks the logical profit take point.
While the Dow Jones index is doing the leg work, the S&P 500 did enough to negate the 'bull trap' and bring upper channel back into play.
Tech indices were not left out of today's gains. Existing long trades hold. Semiconductors are range bound and I have redrawn support to encompass the two most recent 'bear traps'. Technicals are a mixed bag which reflects the indecision of Semiconductor traders.
For today, look for consolidation of today's gains. Shorts don't have an attack point and longs don't have a reason to sell. New longs would be stretching the risk:reward but it's possible traders will be looking to strength in the Dow Jones Industrial average and pricing this into other indices.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.