Daily Market Commentary: Sellers Make First Appearance in S&P for 2012

Today was the first distribution day for the year in the S&P and the second for the Nasdaq.  Despite the selling there was little change on the nature of the rally. A sequence of selling would obviously change this, but today offered little more than profit taking.

Selling in the S&P retraced some, but not all of yesterday's gains. If this is the start of a longer decline then the 20-day MA is the likely support area for buyers to make their next appearance.

The Nasdaq is in the same position, although there is a support level at 2,737 which may play as an alternative for buyers to step in.

The Russell 2000 also has the benefit of the 20-day MA which has converged with 764 support to help buyers.

The extent of today's selling volume is likely to see some follow through tomorrow. Not until 20-day MAs are tested will the integrity of the rally be known.

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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: Higher Volume Accumulation

Bulls were able to keep the party going as yesterday's consolidation gave way to a day of buying. Volume climbed in confirmed accumulation for all key indices.

However, gains in the S&P didn't slow the relative swing form Large Caps to Small Caps (Russell 2000).

Or Tech Stocks

Although there is a fine balance between demand for Tech and Small Cap stocks - which in itself reflects good diversification in money flow to the markets.

Today's action reflects a continuation of the rally kicked off in October and confirmed in December. The Nasdaq 100 is already trading at all-time highs and it looks like the Nasdaq will soon be following suit.  On a weekly time frame, gains for Tech indices have the appearance of base breakouts and may suggest an overall lengthening of the bull market, perhaps to last through 2012.

There is little on offer for bears.  While the rally may encourage profit taking, there is little on offer to suggest going short is an option.

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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: Low Volume Consolidation

Despite missing yesterday's update there was little to split today's or yesterday's action. The only index to attempt to put some distance on the two days was the Russell 2000. Small Caps again attempted to retake the leadership role off Tech stocks as relative strength swung back in their favour; there was even a 'Golden Cross' between the 20-day and 200-day MAs.

The S&P had two flat days, but technicals kept ticking higher at the expense of a loss in relative strength against the Russell 2000.

While the Nasdaq posted a small point gain as Tech stocks continued to pull away from Large Caps.

Bulls have the most to be happy with as indices continue to post gains as relative strength pushes more towards speculative issues (=> attracting money from the sidelines).

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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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