Wednesday, September 01, 2010

Daily Market Commentary: Buyers Storm The Gates

A day when buyers took over the reins and didn't look back all the way to the market close. The only speed wobble was the light volume in the markets for an almost 3% gain on the day. For the S&P there was even a nascent 'buy' signal in the CCI.

($SPX)

via StockCharts.com

The Nasdaq is in the early stages of a bull trap but will have to deal with converged resistance at 2,190 and 2,205 from the 20-day and 50-day MAs respectively.

($COMPQ)

via StockCharts.com

Small Caps were able to go a step further and inched out a MACD trigger 'buy'.

($RUT)

via StockCharts.com

Hard hit semiconductors made sharp gains but it was the only index which failed to close at its highs. It also has yet to make an attempt at clambering back inside its former summer trading range. However, it did manage to reinstate its CCI 'buy' trigger.

($SOX)

via StockCharts.com

Tomorrow should see some follow through and offer a golden opportunity for indices to break through both 20-day and 50-day MAs, to then mount a challenge on 200-day MAs. Even with today's gains the semiconductor remains stressed and is by no means out of the woods; late morning weakness gave back some the gain and there was no late flurry into the close to help boost confidence.

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