Equities Struggle To Rally; What's Next?
Declan Fallon | Sep 13, 2018 12:11AM ET
The last few days have been tricky. The bounce in the Russell 2000 off the 20-day MA and key support of 1,705 has struggled to follow through on what should have been a strong support test. Technicals are a bit of a mixed bag with 'sell' triggers in +DI/-DI and MACD.
Yesterday's 'doji/hammer' is perhaps the last chance saloon to see something happen here. A lower close later today, Thursday, will likely see a break of 1,705.
The S&P is running along accelerated channel support but the sequence of doji despite higher volume accumulation suggests a lack of interest on the part of buyers. Until support breaks, bulls have it but it's not a convincing 'buy' at this point.
The Semiconductor Index enjoyed a big bullish 'hammer' on the 200-day MA but in doing so it gapped below the consolidation. It needs a rally today - one which would create a bullish morning star. Any losses during today's session and a breakdown would be confirmed.
The NASDAQ did a little better than the Semiconductor Index yesterday at holding channel support. The bounce hasn't yet emerged but it's not too late for this to happen.
For today, look for a day of gains, one which would confirm the swing lows and act as a meaningful start point for a rally. Losses on the other hand would open up the possibility of larger declines as summer rallies would be confined to history. From a trade perspective, it's a hold, but if you insist on buying then use a loss of Friday's lows as a stop as markets may struggle with a drop into prior price action.
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.