Friday, July 10, 2009

Stock Market Commentary: Unfufilled Promises

Markets looked ready for a short term snap back but so far it has failed to materialise. The SOX went at it alone and looks vulnerable with the falling 20-day MA about to cut below the rising 50-day MA. A break of the 50-day MA would send shorts covering and kick start a 1-2 week rally this market looks ready to offer (only a short covering rally though).


Buyers with a longer time frame will look to the 200-day MA for low risk long-side opportunities.

The Semiconductor HOLDRs (SMH) are likely to test the breakaway gap. True breakaway gaps don't fill so anything below $20.75 puts the bullish picture at risk.



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.

Posted by Declan Fallon at 11:04 AM
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1 comments:

dave said...

"The Semiconductor HOLDRs (SMH) are likely to test the breakaway gap."

What gap ? That's an hourly chart; there was no gap on the daily chart...not even close to one.

If one defines gaps in this (intraday) manner, one could even have "gaps" when you have inside days on a daily chart.

Regards,
dave

6:45 PM

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