Monday, November 08, 2010

Daily Market Commentary: Quiet Start for the Week.

Bulls didn't push their advantage as bears stayed away. The result was a very narrow days trading.

Swing traders can play a break of S&P high/lows with room to spare to both channel support and resistance.

($SPX)

via StockCharts.com

The downside gap for the Nasdaq is looking a tempting fill - although it could follow through down to the 20-day MA.

($COMPQ)

via StockCharts.com

While the Russell 2000 is very close to channel resistance. CCI is very extended and a pullback to the 20-day or 50-day MA can't be far away.

($RUT)

via StockCharts.com

Bulls have the momentum, but tight trading action narrows the margin for error. It won't take much to spark fear selling in the market, but shorts will be playing it tight lest they get handed another hiding.

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