Breaking News
Black Friday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. Equities: Range Of Market Scenarios In Play

By Declan FallonStock MarketsOct 18, 2021 12:13AM ET
www.investing.com/analysis/us-equities-range-of-market-scenarios-in-play-200605335
U.S. Equities: Range Of Market Scenarios In Play
By Declan Fallon   |  Oct 18, 2021 12:13AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The week finished on Friday with markets in a number of different scenarios.  In the case of the NASDAQ, the rally has returned to former 3-month support—now resistance.  Volume climbed to reigster as confirmed distribution.  It came on a back of a MACD trigger 'buy' and an On-Balance-Volume 'buy' trigger.

COMPQ Daily Chart
COMPQ Daily Chart

The Dow Jones Industrial Average has started to challenge its August 'bull trap'.  Technicals have returned to a net bullish state, although relative performance has started to drift against the NASDAQ 100

INDU Daily Chart
INDU Daily Chart

The S&P cleared its 'bull flag' on Thursday and was able to follow through with a push above its 50-day MA on Friday. Volume climbed to register on Friday as accumulation, and taken together, Thursday's and Friday's action looks set to challenge the August high.  This is good news for bulls.

SPX Daily Chart
SPX Daily Chart

The Russell 2000 (via IWM) finished on a bearish cloud cover candlestick, although technicals are not overbought—an important criteria for measuring the significance of bearish candlestick patterns—it does put a stall on the bounce off the 200-day MA. Technicals are more positive, although On-Balance-Volume switched to a new 'sell' trigger. As before, the larger trading range remains the dominant pattern. 

IWM Daily Chart
IWM Daily Chart

Large Caps and Tech indices look to be finding a second wind without the participation of Small Caps stocks.  If Small Caps can break to the upside from their 2021 range, it would provide an added impetus for both Large Caps and Tech to continue their advance.

Aggressive traders may look to attack the resistance test in the NASDAQ, although bears are increasingly finding themselves on the wrong side of the trade.  Don't be caught short if the resistance test in the NASDAQ leads to a breakthrough. 

U.S. Equities: Range Of Market Scenarios In Play
 

Related Articles

Trading Point
Can Anything Stop The Stock Market? By Trading Point  - Nov 26, 2021

Stock markets have gone on an absolute rampage this year. The problem is that the factors that initially fueled this rally - heavy government spending and endless central bank...

U.S. Equities: Range Of Market Scenarios In Play

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email