Declan Fallon | TalkMarkets | Page 52
Market Commentary
Declan Fallon runs a market commentary blog at Markets.fallondpicks.com, and is a contributor to TalkMarkets and Seeking Alpha. He previously contributed to the Motley Fool. Declan Fallon is also a UI/UX Dashboard Designer for First ...more

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Semiconductors Breakout...
It was somewhat disappointing not to see the Nasdaq and Nasdaq 100 make the break from resistance. However, the Semiconductor index did manage a breakout of 1,150.
Still Waiting For Tech Breakout But Omens Look Good
Expiration Friday pushed some heavy volume through the markets but the buying wasn't enough to bring about the much-anticipated breakouts in the Nasdaq and Nasdaq 100.
Dow Follows S&P Breakout
The S&P held its ground and its breakout without generating significant weakness. However, the Dow managed to post a new closing high although the percentage gain is low and volume was below average.
S&P Breakout Holds - Wednesday, Sept 13
Large Caps and the S&P, in particular, has been leading the broader market with this week's breakout. Technicals are all net bullish as the index looks to mount a challenge of rising channel resistance, which is still some distance away.
Respectable Gains Offer Test Of Highs
So with markets threatening support they instead gap higher and post further gains. Today has probably done enough to see markets post new all-time highs while shorts are left with little to work with.
Decision Time For Tech And S&P
Whether markets have blinked and are ready for further losses or if this is just some 'bear trap' remains to be seen. The key test will be whether support from long established rising price channels will hold if such losses continue.
Markets Coiled And Ready To Strike
The S&P is sitting just above its converging 20-day and 50-day MAs and rising channel support. Technicals are still on the bullish side so I would look for an upside breakout.
North Korean Profit Taking
Friday's tight action plus a long weekend of North Korea news left traders skittish and wanting out. However, there wasn't a significant break of support to suggest a rout is imminent but further losses need to be watched.
Returned To A Bounce Top?
Shorts may find opportunities in Tech indices. The Nasdaq 100 is at resistance with Friday's doji marking a double top with the July bearish engulfing pattern. Adding to this, there is a potential relative performance switch against Small Caps.
Waiting For The Bounce
Friday offered the opportunity for more but in the end it was honors even between bulls and bears. The S&P finished the week on bearish net technicals on higher volume distribution.
Volatility On The Rise
Today's losses look big on current charts but in a historic context, they weren't too severe. Big red bars are not to be ignored and 'market leading' Small Caps have felt the full brunt of the selling from July.
Time To Short?
We had the profit taking sell-off and then the bounce but is now the time for shorts to come in more aggressively?
Shorts Take Profits - Bounce Opportunities Available
Last week brought a shock to traders reared on sub-1% daily swings as profit taking losses of 2%+ swept the board on Thursday in the face of Trump uncertainty. It's a bizarre market given uncertainty is the enemy of the market.
Small Caps Accelerate Losses - Wednesday, August 9
The Russell 2000 has been the index under the most pressure since peaking in July and it was the index to suffer greatest from sellers.
Semiconductors Make Biggest Gain Of Support
Indices experienced varying degrees of buying Monday, most of it relatively small. Biggest winner was the Semiconductor Index as it rallied from converged channel, 20-day, and 50-day MA support.
Nasdaq Breadth Metrics Race Lower
The Nasdaq and Nasdaq 100 were able to finish the week on support but breadth metrics took a nose dive lower. Both the Nasdaq and Nasdaq 100 only have MACD trigger 'sells' to mark weakness.
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