Monday, June 21, 2010

Daily Market Commentary: Plenty of Volatility

Troubling times for the market after Monday morning enthusiasm gave way to skepticism on today's longest day. The S&P was repelled by the 50-day MA overhead but did not break below its 200-day MA or 1,100 support. Also, on-balance-volume eeked out a 'buy' trigger - a sign of bullish accumulation.

($SPX)

via StockCharts.com

The Nasdaq suffered a large bearish engulfing pattern at overbought stochastics [14,3]. The 50-day MA also plays as resistance.

($COMPQ)

via StockCharts.com

Small Caps also finished with a bearish engulfing pattern but with some wiggle room to both 50-day MA resistance and 200-day MA support. Odds favour a move back to the 200-day MA.

($RUT)

via StockCharts.com

The Dow closed with a nasty gravestone doji which pinged off the 50-day MA. Not much room down to the 200-day MA. This could be the first index to blink.

($INDU)

via StockCharts.com

Monday's action suggest Tuesday will see a continuation of the weakness. Bulls can't assume the rally from June lows can keep going up so it will be important for the indices to hold the upper end of last week's trading range.

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