Declan Fallon | TalkMarkets | Page 60
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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First Week Of 2017 Ends On High
The S&P closed near the highs of 2016 with all key moving averages in upward trends. The MACD is still holding to a 'sell' trigger, but this is heading towards a new 'buy' trigger.
Buyers Start 2017 In Fine Form
End-of-year profit taking has given way to start-of-year buying. The best performer on the day was the Russell 2000. It gained over 1.5% as it broke upside from its consolidation.
New Year, New Opportunities
2017 opened with a positive start on higher (albeit low) volume accumulation. The late flourish in the market following the election results helped close 2016 on a positive note. So what will 2017 bring?
Bull Trap For Nasdaq?
The initial upside breaks from the coils are faltering a little. The index showing the most vulnerability is the Nasdaq. There was some recovery before the close of business, but the damage has already been done.
Bulls Lead Out Of Coil
Action into today had looked to offer bears the advantage, but it was a morning gap higher from buyers which gave bulls the initiative.
The Perfect Coil
The indices had another inside day (in a series of inside days) to set up a good swing trade play.
Distribution Friday
While the S&P is drifting a little off course, it's still able to make relative performance gains against the Russell 2000. Money may start cycling from Small Caps to more defensive Large Cap stocks.
Fed Influences Dip Buying
Traders had looked to regain their edge today, but late selling was enough to take some of the wind out of their sails.
Buyers Jump The Gun - Nasdaq Soars
The Nasdaq powered higher as leading tech companies like Apple and Microsoft added over 1%. While the index does well remains a long way from tagging the upper band marking a profit taking opportunity.
Early Profit Taking
It was a slow start for some indices, but not surprisingly, the Russell 2000 saw the biggest of profit taking. The index lost just over 1% in a 'bearish evening star' candestick confirmation. However, supporting technicals are little changed.
Russell 2000 Remains Rich But Could Get Richer
The Russell 2000 is getting close to tagging the 5% zone of historic highs relative to the 200-day MA. Selling covered calls would be prudent for holders of the ETF or Small Caps stocks, but since the election it has been all surprises.
Large Caps Breakout
Yesterday it was the action of Small Caps. Today it was the turn of Large Caps. Significant gains for both S&P and Dow took indices well past their recent swing highs.
Russell 2000 In Take Profit Territory
The Russell 2000 pushes again into the 10% zone of historic high prices (1,388 would be enough for the 5% zone last seen in February 2011). Back in 2011 the index rallied for another couple of months before it lost 30% from its high.
Higher Volume Gaps Higher
An interesting start to the week. Markets gapped higher off the open and were able to add some distance to their starting points.
Nasdaq 100 Net Bearish
Friday's action was relatively uneventful with indices finishing near the day's lows, but none accelerating on Thursday's losses. The one change on the intermediate term time frame was the net bearish turn in technicals for the Nasdaq 100.
Semiconductors Hit Hard
The one chart I want to show is the near 5% loss in the Semiconductor Index. Having escaped relatively unscathed from recent day's selling it was a whirlwind of action for the index today.
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