Tuesday, June 08, 2010

Daily Market Commentary: Bulls Make a Comeback

While market's MACDs remained on a 'sell' it was a better day for bulls. There was higher volume all around which for large caps (S&P and Dow) expressed itself as buying; February & Flash-crash lows remain an area to defend.

($INDU)

via StockCharts.com

For the Nasdaq the buying was not as strong but the afternoon bullish reversal was evident.

($COMPQ)

via StockCharts.com

Even returns for Small Caps suggest the 200-day MA could be regained tomorrow

($RUT)

via StockCharts.com

The recovery in the semiconductors wasn't enough to prevent a MACD trigger 'sell' but tomorrow is a big day with the recent loss of support to battle.

($SOX)

via StockCharts.com

Tuesday's doji should see some upside follow through for markets but what happens when they get to 200-day MAs will be key. Until then, trading range behavior dominates - bound by Flash-crash lows and 200-day MAs.

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