Tuesday, June 15, 2010

Daily Market Commentary: Firm Resistance Breaks

The only disappointment with today was the general lack of volume but it was key day for bulls. For the S&P there was a comprehensive break of declining resistance from April plus a push above the 200-day MA.

($SPX)

via StockCharts.com

The Nasdaq had already broken declining resistance two days prior and is currently working its way towards the 50-day MA.

($COMPQ)

via StockCharts.com

Small Caps also pushed a channel breakout and is likely to be the first to test its 50-day MA. Note supporting technical breakout in CCI

AAAAAAAAD Russell 2000 Small Cap Index ($RUT): "

via StockCharts.com

But semiconductors were the firm winner on the day; a 5%+ gain on the day pushed it out of its trading range and above its 50-day MA (bullish for the Nasdaq and Nasdaq 100 to do likewise). April highs are next.

($SOX)

via StockCharts.com

The Percentage of Nasdaq Stocks Above the 50-day MA moved towards a confirmed bull trend - other breadth indicators are likely to follow suit soon.

($NAA50R)

via StockCharts.com

Of these breadth indicators, the Summation Index is smoothly building a market bottom

($NASI)

via StockCharts.com

In summary, bulls in the ascendancy after what looked to be a strong swing to bears yesterday. Tomorrow's action should hold the upper part of today's range to keep the pressure on the bears.

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