Stock Market Commentary: Relief Rally in Effect

Major market gains and breaks through important moving averages had all the look of a great day for the indices but volume was very light relative to the gains. The Nasdaq was able to make it past its 20-day and 200-day MA but it remains questionable as to whether it can go on to make new highs given its weak relative performance to Large Caps.


The Dow was at least able to find support at the 20-day MA and has room to maneuver to its 200-day MA. With the sector rotation to safety from speculative indices it could go on to make new highs.


The SOX was unfortunate in it broke through the 200-day MA but stalled at the 20-day MA.


I'm not optimistic on this rally lasting but it has been fooling everyone for a good month now and could continue to surprise.

Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.