Wednesday, July 15, 2009

Stock Market Commentary: Significant Follow Through

Big volume combined with new reaction highs puts the markets back on the offensive. The gains also improved some key supporting technicals which will help traders. The Nasdaq gapped and cleared downward channel resistance; putting the 20-day, 50-day and 200-day MAs behind it. There was also a MACD trigger 'buy' with all technicals net green once again.


Wednesday's strength also revitalized Large cap indices - the Dow cleared declining resistance and is very close to turning technicals net green.


The gains in the semiconductor index were enough to turn supporting techncials net bullish. The large gap pushing the index into a new reaction high (but not new 52-week high).


May highs to challenge? Look for Wednesday's gains to consolidate with some narrow intraday action.


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.

 
f9229fcfd1b1390be00cfccc86c90349c93a4179bf4227457c