Tuesday, January 25, 2011

Daily Market Commentary: Attempting to Rally

I'm getting back into the fold after a few days down with the flu. Today was yet another attempt by bulls to make back last week's losses. The S&P was able to defend its 20-day MA with a slight uptick in volume (net accumulation). Last week's selling didn't hurt the technical picture at all - so bulls hold the advantage.

($SPX)

via StockCharts.com

The Nasdaq hasn't the advantage of using the 20-day MA as support like the S&P, but is instead struggling to maintain it as support.

($COMPQ)

via StockCharts.com

The Nasdaq 100 did better, gaining traction at new channel support

($NDX)

via StockCharts.com

Although there was no help from the semiconductor index

($SOX)

via StockCharts.com

The Percentage of Nasdaq Stock above the 50-day MA moved to a confirmed 'sell'; although it may only be a temporary weak phase as it turned out to be last November.

Nasdaq Percent of Stocks Above 50 Day Moving Average (EOD) ($NAA50R)

via StockCharts.com

Finally, Small Caps are lingering close to 50-day MA support but are outside of their former rising channel with a downtick in its 20-day MA.

($RUT)

via StockCharts.com

Bulls should be able to push on from 20-day MAs for Large Caps and Tech. Small Caps have their work cut out but the 50-day MA should act as support.

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Zignals Trading Strategy Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.

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