Thursday, September 02, 2010

Daily Market Commentary: Low Volume Gains

While volume was uninspiring it was a good day for markets as they closed at their highs. The S&P managed to slip past converged 20-day and 50-day MAs on the back of a fresh MACD 'buy' - a respectable finish to the day.

($SPX)

via StockCharts.com

The Nasdaq did it's bit by making a good case for a bull trap supported by a MACD trigger 'buy' and a bullish cross in the on-balance-volume trigger line.

($COMPQ)

via StockCharts.com

Small Caps are fast approaching declining resistance with the 200-day MA overhead. There was also a bull cross between +DI / -DI directional index, leaving just stochastics to complete net bullish technicals.

($RUT)

via StockCharts.com

The semiconductor enjoyed the best of the day's gains - but this gain still wasn't enough to create a bear trap (but it helps). Look for a test of the 20-day MA Friday which is just 3 points away.

($SOX)

via StockCharts.com

Tomorrow's action will be dictated by the nonfarm payroll data, but the past couple of days give bulls a little wiggle room on weakness.

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