Monday, July 13, 2009

Stock Market Commentary: Bullish Accumulation

A day where bulls got excited; firm accumulation was backed by some significant moving average breaks. Best move came from the semiconductor index which powered through 20-day and 50-day MAs. Next challenge is the last reaction high (then May highs).


Strength in the semiconductor index will help Tech averages test channel resistance.


The Russell 2000 worked off its 200-day MAs but it also saw the 20-day MA make a bearish cross of the 50-day MA. However, the CCI made a bullish cross of -100.


The S&P suffered the same fate as the Russell 2000 with the 20-day MA cutting below the 50-day MA. But it was able to push off the 200-day MA and finished the day at its highs.


Should be more gains in the tank even if the next couple of days are spent consolidating Monday's move.

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.

 
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