Resistance Test Due This Week For S&P 500 As Semiconductors Prime For Breakout
Declan Fallon | Sep 27, 2021 12:07AM ET
We have the Russell 2000 caught in a long term trading range, and despite registering a gain it hasn't changed the larger picture in favor of either bulls or bears. The only index at a point of inflection is the S&P.
After breaking below the bearish wedge it now finds itself rallying back to former support turned resistance. There are flickers of good news; intermediate stochastics returned above the bullish mid-line and Friday's close finished above the 50-day MA.
The Russell 2000 (via IWM) closed with a doji inside Thursday's white candlestick. If this was an overbought market we would be looking at a bearish harami cross but stochastics are at a mid-level, just like the index itself.
The NASDAQ is at least looking upwards having successfully defended support marked by the July and August swing lows. Technicals are a little mixed with Stochastics and On-Balance-Volume generating 'buy' signals but other technicals are bearish.
The most interesting index is the Semiconductors. It's nicely set up for a breakout this week with technicals mostly bullish. Only the MACD is negative. Strength in semiconductors should help the NASDAQ.
The S&P is primed for a test this week, but what it does will likely lead to a big say as to what will happen for the rest of the year. Tech indices are firmly bullish, so we may see some contribution from Tech stocks to the S&P.
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.