Tuesday, December 07, 2010

Daily Market Commentary: New MACD 'Buys'

While today's action was a whole lot of nothing, over today and Friday there were a couple of significant technical shifts.

The S&P saw a MACD trigger 'buy' which reversed the last of the bear signals triggered by the November decline.

($SPX)

via StockCharts.com

The Nasdaq too got a MACD triger 'buy' which swung all technicals back to net bullish, ending the November decline. Monday's tiny gain was enough to register a new closing high for the year (and the rally from March 2009 low)

($COMPQ)

via StockCharts.com

The Nasdaq also got a boost as the Percentage of Nasdaq stocks above their 50-day MA broke upside with new 'buy' triggers in its MACD and ADX.

($NAA50R)

via StockCharts.com

The Russell 2000 has yet to take a breather since breaking to new highs. It was one of the better performers for Monday.

($RUT)

via StockCharts.com

So while today may not have grabbed much attention it effectively put an end to the technical decline from November. Going forward it's a matter of hanging on to longs - although swing traders could look to Monday's narrow range as an opportunity to trade the high/low break (stop on the flip side of the range).

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