Thursday, December 02, 2010

Daily Market Commentary: Push Through 20-day MAs

The S&P was able to break clear of the November decline, pushing through the 20-day MA - albeit on slightly lower volume. There was a modest technical improvement but the early bear warnings haven't reversed (although technicals are still on a confirmed 'buy' signal - the thick green line on the chart).

($SPX)

via StockCharts.com

The Nasdaq gapped to its 20-day MA, but was unable to push higher. The gap might yet close if Wednesday's open price (2,535) is undercut.

($COMPQ)

via StockCharts.com

The real winner on the day was the Russell 2000. It cracked through tricky 736 resistance on a MACD trigger 'buy'. The move was enough to negate the early bearish technical swing, meaning bears have it all to do.

($RUT)

via StockCharts.com

The other mover was the semiconductor index. Yesterday's doji at the 20-day MA, which had suggested a bull trap to the earlier breakout, has done a total 360 and is now a bear trap with 20-day MA support. The sharp 3% gain has given semiconductor index bulls some wiggle room.

($SOX)

via StockCharts.com

Despite the picture perfect bounce off the 50-day MA for the S&P, or the clean breakouts for the Russell 2000 and Semiconductor index, there was a worrying lack of push beyond the initial opening gap. Tomorrow will offer an opportunity for bulls to add to the tally with 20-day MAs available to provide support. Can they do it?



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