Wednesday, March 04, 2009

Stock Market Commentary: Weak Rally But Semiconductors Firm

After a series of losses today's rally was not all too surprising. Good to see volume climb to register an accumulation day but the bears weren't going to let bulls have it all their way with a late selling flourish. Technicals are a long way from recovering, so little to cling on to here.

The Nasdaq did at least hold support, but it's hard to see it holding in the face of small and large cap weakness.

However it was helped by a strong support bounce in semiconductors; note the bullish divergence in CCI and stochastics.

If semiconductors can hang on then this strength will eventually filter to the other indices.

Dr. Declan Fallon, Senior Market Technician, the free stock alerts, market alerts and stock charts website