Daily Market Commentary: Wide Range Day

In the end it was a day which was difficult to pin down. The S&P and Nasdaq finished with black 'spinning top' candlesticks - potentially bearish, but there was no break of support. The S&P is very close to a 'Golden Cross' which would firm up bullish support.

($SPX)

via StockCharts.com

But the Nasdaq was able to go one better on a day of higher volume accumulation; is this a buying opportunity?

($COMPQ)

via StockCharts.com

Small Caps took the worst of the selling, although the technical picture looks weaker than the current price situation.

($RUT)

via StockCharts.com

But really, it's all about breadth, and other than the Percentage of Stocks above the 50-day MA (which has topped), other breadth indicators support a continuation of the rally.

($NASI)

via StockCharts.com

Friday could see the market push back (higher) but as each day passes the narrow trading range which is developing could turn into a significant supply zone should markets snap lower for just a couple of days. Bulls need to push - and push soon - if they are to keep their advantage.

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