Tuesday, October 12, 2010

Daily Market Commenary: Bulls Push On

Bulls rebuffed an attempt by bears to push the S&P lower. They were able to recover intraday losses to close the index near the day's high. Volume climbed to register an accumulation day. Since technicals turned net positive there have been eight accumulation days to three distribution days.

($SPX)

via StockCharts.com

The Nasdaq also marked an accumulation day. It's gains were helped by the semiconductor index.

($COMPQ)

via StockCharts.com

The semiconductor index was able to do the leg work it couldn't do yesterday, pushing away off its 200-day MA.

($SOX)

via StockCharts.com

With Tuesday's gains there is a reasonable chance the rally will continue tomorrow, squeezing shorts out of their positions. Short positions in the Dow are perhaps most vulnerable.

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