It was a day which had more in common with last week’s vacation trading than the start of a new trading week. Indices were little changed on the day, trading in a narrow range on slightly heavier volume.
The chief concern was the semiconductor index. It dropped further away from a down-turning 20-day MA, finishing on 390 support. Bulls won’t want it to lose much more with the 50-day MA at 383, the last line of defense for bulls.
The worry for the Nasdaq and Nasdaq 100 is while they are holding 20-day MA support, the influencing semiconductor index is pulling further away from its own. Both tech averages are operating on a ‘sell’ trigger in their MACDs, but other technicals are holding the bullish line.
Those looking for a long trade can focus on the Dow which is holding rising trendline support having bounced off its 50-day MA.
Markets are still vulnerable, although I have taken a long position in the XLU from today’s open. I suspect there is still enough juice in the tank to see another leg higher.
The last week of holiday trading finished with mild losses on light volume.
The Dow is trading within a narrow range between 12,875 and 13,335. Whichever breaks first will set the tone for the rest of the year.
The Russell 2000 had little so show for the week, gaining just a couple of points. It has the most work to do if sitting on the bull side of the fence.
The Nasdaq is poised at resistance with closest weekly support almost 200 points below.
Unlike some previous trading weeks, breadth was little changed. It may reflect a swing top for the indices.
by MARTIN SPEEDIE on AUGUST 3, 2012
This infographic gives a clear picture of the state of the Australian property market. It provides for some very interesting reading for both the seasoned property investor, and for those looking to invest for the first time.