Thursday, June 03, 2010

Daily Market Commentary: 200-day MAs Key as MACD trigger 'buys'

It was a mixed day for the markets. For the S&P (and Dow) the 200-day MA ended up the perfect containment for the rally (along with a converged 20-day MA). On the flip side there was a MACD trigger 'buy' as relative strength made a push back towards speculative issues - also bullish.

($SPX)

via StockCharts.com

The Nasdaq followed the lead of the semicondcutor index and broke through declining resistance with a MACD trigger 'buy'

($COMPQ)

via StockCharts.com

Small Caps are approaching resistance of a downward channel with the 200-day MA acting as support and the 20-day MA playing as resistance (so far).

($RUT)

via StockCharts.com

Tomorrow sits on the precipice for bulls; a gap higher in the morning could see a big day as shorts drive short covering and 20-day MAs are once again support. A weak open will keep prices inside the week long range, but even a large down day is unlikely to break this range. If looking to short place stops 1% above 20-day MAs.

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