Markets completed the week with an accumulation day on Friday, with bulls coming in at 20-day MAs for the S&P and Nasdaq. The Russell 2000 additionally dug in, though consumers labored with no clear help degree, however Friday’s end might supply a chance for a swing low to develop if there’s some upside on Monday.
The S&P labored a rally off its 20-day MA, however did so within the absence of accumulation. The ‘sell’ set off within the MACD hasn’t been reversed, however different technicals are nonetheless wholesome.
The Russell 2000 is working a possible swing low with help pinned to a minor help degree from February.
However, all Nasdaq breadth metrics are internet bearish, which might recommend additional weak spot for the father or mother Nasdaq is a robust risk. This might imply Friday’s achieve is a ‘bull’ lure of its personal.
As for shorting alternatives, the Semiconductor Index might supply the most effective danger:reward alternative. The doji completed simply above the final excessive of 991, nevertheless it additionally closed at former channel help – now resistance. A transfer to the slower rising trendline is a possible goal.
For Monday, shorts can check out the Semiconductor Index, whereas longs can wait and see if there’s a additional advance for the S&P and Nasdaq from the bounce off its 20-day MA. With Brexit as a consequence of begin subsequent week there could also be different distractions.
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SOURCE: Fallon Financial Commentary – Read whole story here.