Wednesday, April 28, 2010

Daily Market Commentary: Temporary Defense By Bulls

No surprise to see modest recoveries in the indices but it was a mixed bag in terms of the significance of today's buying

For the S&P look to the 20-day MA to play as resistance as the bounce matures.

($SPX)

via StockCharts.com

But small caps were able to hold trend support

($RUT)

via StockCharts.com

And the Nasdaq 100 also defended channel support with a hammer (but given stochastics are not oversold its significance is reduced)

($NDX)

via StockCharts.com

So while support is available to hold, don't expect bulls to capitulate as easy as it had looked the past couple of days. However, a larger pullback is required if the rally is to continue in the long term.

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