Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Bulls Look To Make A Stand

Published 06/19/2018, 12:28 AM

It's looking a little early for some of the nascent pullbacks seen, but buyers are stepping in here to support markets. Much of this looks to be driven by the secular bull market leader, the Russell 2000. It managed a new closing high yesterday as momentum traders continue to benefit from strength in this index.

RUT Daily Chart


The index in the best position to offer a trade later today is the Semiconductor Index. Yesterday it offered a solid doji just above support. The 'tweezer top' is a concern as this pattern is typically a strong reversal signal so cautious buyers may instead prefer to wait until this is negated - but then the risk:reward becomes much broader. Technicals are a mix of bullish and bearish, although tie-deciding relative performance is on bears' side (vs Tech indices).

SOX Daily Chart


Tech indices have benefited with the NASDAQ 100 offering a breakout opportunity of its own; this a second chance for a bite of the momentum cherry. Technicals are also a little stronger than the Semiconductor Index.

NDX Daily Chart


The NASDAQ is a little further along in its push to new highs but it's a momentum play alternative if you don't like the NASDAQ 100.

COMPQ Daily Chart


The S&P is also playing for a bounce opportunity with the 20-day MA acting as a support level. It may be not as attractive as other indices but it's a more cautious play. Technicals are okay despite relative underperformance.

SPX Daily Chart

For today, there are different grades of long plays: momentum plays in the NASDAQ, and NASDAQ 100, pullback plays in the Semiconductor Index and S&P and a momentum hold for the Russell 2000.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

This article didn't age well.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.