Daily Market Commentary: Better Than Expected

Bulls are defending the May spike low not at its lows, but at the spike low's highs. The S&P finished just shy of a test of its 200-day MA, but the 20-day MA is less than 10 points from a bearish cross of the 200-day MA; a big battle is due soon! Volume was light which is a little worrying given the extent of the day's gains.

($SPX)

via StockCharts.com

The Nasdaq is close to yet another test of declining resistance connecting April and May reaction highs. Each test weakens resistance and with the 200-day MA acting as support the likelihood is for resistance to break. Pending MACD trigger 'buy' too.

($COMPQ)

via StockCharts.com

The Nasdaq 100 went one step better and did trigger a MACD 'buy' as the index finished just above the 20-day MA. There may also be an early stage break of declining resistance connecting April-May reaction highs.

($NDX)

via StockCharts.com

Tomorrow offers a great chance for bulls to cement a bottom. Breaking past declining resistance and/or 20-day MAs will firm up demand generated from the past week's trading ranges.

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