Wednesday, September 29, 2010

Daily Market Commentary: Markets Poised to Push High

It would have been easy for markets to push lower after Tuesday's weak start to the day, but it was commendable to see bulls push back and finish the day with yet another (modest) accumulation day.

For the S&P the 3-day low of 1,132 is looking a good place for a stop as its nicely positioned to add another couple of percentage points. Technicals and volume patterns remain in the bulls favour.

($SPX)

via StockCharts.com

The Nasdaq is defending 2,344 support on good volume. Since technicals turned net bullish there have been six accumulation days to two distribution days; bulls keep the edge.

($COMPQ)

via StockCharts.com

The Russell 2000 inched out of its trading range and enjoyed a relative shift to reassume its position as market leader. May reaction highs next target

($RUT)

via StockCharts.com

Semiconductors may have had the best of the day as they closed just under their 200-day MA. I suspect Wednesday will see some consolidation around this key moving average.

($SOX)

via StockCharts.com

Assuming the semiconductor index fails to crack through its 200-day MA it will likely be a quiet day for Tech stocks. Small Caps have the most incentive to push higher having cleared prior supply from its trading range. While Large Caps have the cover of 'safety' to attract wary buyers. Bulls keeping the rally ticking.

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