Day Of Consolidation

Not a whole lot to say about today. Small loses didn't erode prior gains but the tight action offers swing traders the best chance for gain; trading the narrow range coil offers an attractive risk:reward. Long-term traders need to wait for an oversold condition before building their positions.

The S&P is at channel resistance suggesting shorts have the edge. Stops go around 2,560.
 

(Click on image to enlarge)

The Nasdaq is caught in the middle ground of its rising channel. Again, swing trade for a target of upper/lower range of the same channel.
 

(Click on image to enlarge)


The Russell 2000 continued to drift off highs with the 20-day MA the first downward target and a chance for buyers waiting to buy the pullback.
 

(Click on image to enlarge)


The Nasdaq volatility index is also playing for a bounce which is bad news for the Nasdaq index and a key top could be just weeks away.
 

(Click on image to enlarge)


Watch for reactions from the tight coiling action of recent days. There isn't a whole lot of room for a move without consequence, so the next tradable leg may only be 1 or 2 days away.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.