Daily Market Commentary: Small Change

Today's action amounted to a bit of a non-event. Tight price action was combined with low volume. The quiet action did little to change the broader picture, or the technical health of the indices.

The only point of interest in the S&P was the increasing disparity in relative strength between the S&P and Russell 2000.

While the Nasdaq continued to pull away from the S&P as prices continued inside the rising channel.

But there was little change when the Nasdaq was compared against the Russell 2000.

Despite the lack of interest on the part of traders, bulls can still be considered to be holding court.

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.


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Daily Market Commentary: Rally on Higher Volume Accumulation

Yesterday's tight action gave way to broader gains on higher volume. Tech and Small Cap indices enjoyed the best of the gains, helped by a very strong gain for the semiconductor index.

Gains in the Russell 2000 helped push supporting technicals back into firm overbought territory. Russell 2000 gains were enough to swing relative strength back Small Caps, although the long term relationship is in flux.

Nasdaq gains were not as great as for the Russell 2000, but the tight rising channel remains intact.

The semiconductor index was where most of the driving was done

Large Caps stayed in touch with gain in Small Caps and Tech indices, although there is a growing separation in relative strength between Large and Small Caps, to Small Caps - and bulls - favor.

While the rally chugs along the 20-day MA remains a good place to trail a stop or take advantage of pullbacks.  The only negative on the day was the inability to reverse the MACD 'sell' trigger in the S&P.

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.


Zignals offers a full suite of FREE financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock quote watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own strategy and sell it in the MarketPlace to earn real cash.

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Daily Market Commentary: Light Losses on Low Volume

It was a mixed day for the indices. Large Cap indices suffered small losses on lighter volume. Tech averages made a small gain on higher volume. Small Caps played closer to Tech action.

The S&P will likely see another pass made on its 20-day MA on Wednesday. The 'sell' trigger in the MACD suggests the 20-day MA will not be support, but while the index is above this moving average it's offering a (somewhat weak) buying opportunity.  Non-MACD technicals remain healthy.

The Nasdaq has been riding a very tight channel.  This won't hold forever, but until breached it's a buy at support and sell at resistance - today's close was at channel support. However, an opening gap down Wednesday would probably play better as a short with a stop above Tuesday's high.

The Russell 2000 is seeing an ever increasing shift in momentum from Small Caps to Tech stocks (see relative strength along the bottom).

For tomorrow, there is a weak 'buy' opportunity at the 20-day MA in the S&P and channel support of the Nasdaq. But should there be an opening gap down in these indices a more aggressive short play (fading the gap fill) may offer better risk:reward.

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.


Zignals offers a full suite of FREE financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock quote watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own strategy and sell it in the MarketPlace to earn real cash.

You can read what others are saying about Zignals on Investimonials.com.
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