Tuesday, January 18, 2011

Daily Market Commentary: Semiconductors at Channel Resistance

With the rally steady-as-she-goes across all key indices it is left to the semiconductor index to make its next move. The SOX finished on channel resistance although technicals are not pointing to immediate weakness - or indeed a bearish divergence - so there is a good chance tomorrow will see an acceleration of the rally for semis.

($SOX)

via StockCharts.com

The Nasdaq 100 is hugging former support line. I have placed greater emphasis on the shallower channel as new support. Volume was a little disappointing, so this trend may flatten more into a sideways consolidation.

($NDX)

via StockCharts.com

Small Caps are on the verge of a new MACD trigger 'buy' signal (above the bullish zero line). Bissecting support/resistance.

AAAAAAAAD Russell 2000 Small Cap Index ($RUT)

via StockCharts.com

Meanwhile the S&P continued to push higher on good volume accumulation

($SPX)

via StockCharts.com

Little to suggest the rally is about to end for any of the indices. The only case where technicals look weak is where there is a flat-lining in some of the index MACDs. Tomorrow is another day.

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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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