Wednesday, June 16, 2010

Daily Market Commentary: Maintains Gains

Another good day for bulls as yesterday's gains were held throughout the day. For the S&P the narrow doji was able to hang above the 200-day MA. Low volume kept the hardest of the selling at bay.

($SPX)

via StockCharts.com

For the Nasdaq there was a bull cross in on-balance-volume; emphasizing a swing towards bullish accumulation.

($COMPQ)

via StockCharts.com

The Dow was similarly impressive with both a bull cross for on-balance-volume and a doji which held the 200-day MA.

($INDU)

via StockCharts.com

While the Nasdaq 100 is very close to breaking a second resistance line running very close to its 50-day MA.

($NDX)

via StockCharts.com

And finally, the semiconductors turned net bullish technically as the 50-day MA held by the close of business.

($SOX)

via StockCharts.com

All-in-all, a very good day for bulls. A few more days like today with some tight trading will nicely set up a challenge on April highs. A worst case scenario would be a series of down days with each subsequent down day giving back a little more than the previous day. Three or four days like this generally lead to price collapse.

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