Will this be third time lucky for Semiconductor Index short traders? The last two short trades at the 50-day MA have failed so will the narrow doji at 'bear flag' resistance offer a new opportunity for shorts to reverse the two prior losses? It should be noted, technicals do not support a short position but a stop can be run tight to 1,321 highs as any gain from here will break the 'bear flag'.
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The S&P also experienced a doji at channel resistance so it offers a shorting play for those looking at weak price action. As with the Semiconductor Index technical action does not support a short position.
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The Nasdaq finished with a bearish 'black candlestick' but it didn't occur near resistance and technicals don't support a short trade either.
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The Russell 2000 didn't add much to yesterday's breakout and it didn't push away from new-found support either. The breakout is still intact but the risk of a 'bull trap' remains.
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Today's narrow intraday action is an opportunity for shorts to take relatively low risk plays in some of the lead indices but given the strength of their rallies, there is a high chance for failure.
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