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Tuesday’s Action Provides Relief for Bulls

Tuesday’s action came as a bit of a relief for bulls worried the return of Traders from their holidays would kick start a wave of selling.

 

By Dr. Declan Fallon

 

For a while it had looked like sellers were about to get what they wanted with a picture perfect break from tight action (in the hourly chart), but it came back strong to close near highs.

For example, the Dow (NYSEARCA:DIA) showed this reversal nicely.


On the daily chart, the action hadn’t the look of much but it’s significant with higher volume accumulation. The S&P (NYSEARCA:SPY) hasn’t yet generated a reversal of technicals, but if this action continues it will happen soon.

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The Russell 2000 (NYSEARCA:IWM) has already posted new highs and this leadership – should it continue – will help bring other markets with it.

The Nasdaq (NYSEARCA:QQQ) wasn’t left out either.

For tomorrow, look for continued gains from what was a positive start for the indices.