Since redrawing channel resistance the S&P, Nasdaq and Nasdaq 100 now find themselves up against (accelerated) channel resistance.
This may be viewed as an opportunity to take (partial) profits and/or sell covered calls.
Buying volume for the S&P (NYSEARCA:SPY)was modest and technicals remain strong but some pause in the buying would look preferable at this point.
The Nasdaq (NYSEARCA:QQQ) and Nasdaq 100 were a little more bearish given they both finished with bearish black candlesticks on higher volume ‘selling’. Again, with the channel acceleration in play and a six-day sequence of gains, some profit taking would appear favored.
The Semiconductor Index popped its head above the ‘bear flag’ but the breakout looks to have failed. Shorts with a stop above 1,340 is looking like a good trade here. Technicals are firm although the index is again underperforming against the Nasdaq.
For tomorrow, watch for a retreat from channel resistance for Tech and Large Cap indices.