Wednesday, September 22, 2010

Daily Market Commentary: Could Have Been Worse

By early afternoon it was looking all rather shaky for bulls, particularly for Small Caps (Russell 2000), but in the end the rot never set and markets held their ground. Loses were relatively minor but there was confirmed distribution for the Nasdaq and Nasdaq 100. However, even the losses in the Nasdaq were less worrisome given the 'Golden Cross' between 20-day and 50-day MAs.

($COMPQ)

via StockCharts.com

Losses in the S&P didn't break former channel resistance turned support.

($SPX)

via StockCharts.com

And while it was looking bad for the Russell 2000 it was able to hold the 200-day MA with a 'Golden Cross' between 20-day and 50-day MAs. However, there was a 'sell' trigger in the CCI and 672 is looking firm resistance.

($RUT)

via StockCharts.com

Once again, semiconductors were left in the worst state. The days' modest losses were enough to leave a potential bull trap behind - although in reality it's more likely to morph into a new trading range; time will tell. Technically, there were 'sell' triggers for the CCI and ADX.

($SOX)

via StockCharts.com

Today gave us the opening weakness, but not the hard drop. It still looks probable tomorrow will continue the selling and whether it proves to be a temporary event will be governed by the volume. Bulls will want light volume selling, bears will want to crack the nascent trading range breakouts - confirming supply zones.

Follow Me on Twitter

Build a Trading Strategy Business in Zignals



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 quote 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