Tuesday, August 03, 2010

Daily Market Commentary: Large Cap Breakouts Hold

Key to today's action was for large cap's to hold yesterday's range breakouts and this they did. Bulls can be satisfied with the days work; it will be important there is no significant deterioration from here and key moving averages can hold in support. For the S&P this is the 200-day MA, but even an intraday reversal will look to the 20-day MA for support.


via StockCharts.com

The Nasdaq registered slightly higher selling volume (distribution) but the 200-day MA was not violated as support - a typical consolidation day.


via StockCharts.com

But the Russell 2000, with a similar tight range day, kept below resistance.


via StockCharts.com

And the semicondutors are struggling to hold their 200-day MA.


via StockCharts.com

So while today sprung no real surprises there are still concerns amongst semiconductors and small caps which could drag the large cap breakouts down.

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