Daily Market Commentary: Decent Attempt By Bulls

Okay, bulls couldn't hold all of their gains by the close of business, but their attempts at breaking the consolidation still have merit.  None of this changes the overbought condition of breadth metrics, but it suggests a mini-rally could emerge before breadth is again in heavily overbought territory.

The S&P managed to edge a break of declining resistance on confirmed accumulation. Bearish technicals remained bearish, but the net technical picture is still bullish.

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Weekly Market Commentary: Breadth Still Favours Bears

While Thursday's rally favoured bulls, with buyers jumping in at channel support for the S&P and 50-day MA for S&P and Dow, Friday took some of this gloss off - but didn't reverse all of the gains.  However, market breadth remained in the bearish camp, with breadth metrics either overbought (Bullish Percents) or declining (Summation Index).

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Daily Market Commentary: S&P at Channel Support

Sellers kept the pressure on, but volume was lighter than yesterday. The S&P finished at channel support and will find itself under pressure tomorrow. Technical weakness expanded with a 'sell' trigger between +DI and -DI.

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Daily Market Commentary: Sellers Edge It

Yesterday's highs remain the risk metric for new short positions. Bulls were unable to maintain their late morning advance after opening gaps down across the indices. Until such highs are broken, the near term short position remains favoured.

The S&P saw increased volume in confirmed distribution.  It was accompanied with a 'sell' trigger in On-Balance-Volume.  In the near term, there is an upcoming convergence between declining resistance and rising support of the channel.  Channel support is also aided by the 50-day MA. Support should be stronger, but take nothing for granted!

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Daily Market Commentary: Low Volume Action

No real surprises with today's trading: narrow action on light volume.  The biggest gainer was the Russell 2000, but it remained below rising support and the swing high.

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Weekly Market Commentary: Recovery Too Little Too Late?

Despite a solid Thursday/Friday there are warning signs to suggest the recovery is not all it seems.  For the Nasdaq Summation Index it was a straight down week from an overbought state.

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Daily Market Commentary: S&P Channel Support Holds

The S&P lived up to its potential with a defensive rally off the 50-day MA / channel support (take your pick). Next test is channel resistance at the 20-day MA. Technicals likely to turn net bearish tomorrow despite bullish recovery.

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Daily Market Commentary: Selling Continues, S&P Down at 50-Day MA, Russell 2000 Fails To Hold 20-Day MA

Just a quick update as I didn't do a post after the market close yesterday.  Selling continued to drive markets lower, confirming a large negative divergence in Nasdaq breadth (Percentage of Nasdaq Stocks above 50-day MA) with increasing technical weakness.

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