Thursday, May 27, 2010

Daily Market Commentary: Bears Caught Short

The strength of Thursday's buying may in part have to do with what looked to have been a perfect bear set up from Wednesday. Once yesterday's highs were taken out it was going to be hard for sellers to regain control and this was evident with markets closing near the day's highs.

The S&P finished at its 200-day MA which may offer bears an opportunity but it is looking like dips will be viewed as buying opportunities

($SPX)

via StockCharts.com

The Nasdaq made it back above its 200-day MA; declining resistance next to negotiate.

($COMPQ)

via StockCharts.com

The Russell 2000 offered 200-day MA buyers a hefty return with an over 4% gain.

($RUT)

via StockCharts.com

With the semiconductor index nestled against declining resistance from April highs. Friday will offer a big test but odds favor an eventual break higher

($SOX)

via StockCharts.com

So with substantial gains it would be hard to see an immediate follow through with 20-day MA resistance overhead.

But bulls have found their voice.

Follow Me on Twitter

Build a Trading Strategy in Zignals; Read how and earn real money (once out of Beta) in this PDF.



Dr. Declan Fallon, Senior Market Technician for Zignals.com, offers a range of stock trading strategies for global markets, also available through the latest rich internet application for finance, the Zignals MarketPortal or the Zignals Trading Strategy MarketPlace.

Zignals offers a full suite of financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock list watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own trading system and sell your trading strategy in our MarketPlace to earn real cash.

Read what others are saying about Zignals on Investimonials.com.
JOIN US TODAY - IT'S FREE!
 
f9229fcfd1b1390be00cfccc86c90349c93a4179bf4227457c