Tuesday, September 07, 2010

Daily Market Commentary: 200-day MAs Offer Frustration But Technicals Net Positive

There was little more to expect after three days of gains that the week would start slow after the long weekend. For the likes of the Russell 2000, Dow and Nasdaq 100 it was the 200-day MA which proved to be the step-to-far for bulls.

For the Russell 2000 there is the risk of a bull trap following Friday's edge above resistance although technicals are net positive.

($RUT)

via StockCharts.com

The Dow, likewise, enjoys net positive technicals, but really it's stuck in a no-mans land in the middle of a rising channel.

($INDU)

via StockCharts.com

Likewise, the Nasdaq 100 enjoys net positive techncials even if market direction is lacking.

($NDX)

via StockCharts.com

The only worry was the semiconductor index which drifted out of the former range - a drop required to maintain the bear trap.

($SOX)

via StockCharts.com

Not too much to take out of today. Volume was little heavy given it was geared towards selling after the long weekend, but there is room for bulls to work with.


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