Wednesday, February 16, 2011

Daily Market Commentary: Modest Gains on Higher Volume

What the market took yesterday was given back today. Higher volume swung things in favour of bullish accumulation. The S&P continued to advance neatly between support and resistance of its channel.

($SPX)

via StockCharts.com

Likewise for the Nasdaq

($COMPQ)

via StockCharts.com

The Russell 2000 returned to former channel support - now resistance. Yesterday's attempt to initiate a downward move was out done by today's rally. The rally likely triggered fresh short covering as new highs solidified. Can shorts provide pressure tomorrow?

($RUT)

via StockCharts.com

For Thursday, again look to the Russell 2000 to provide bear side pressure. Other indices only have the trend to look too and a period of indecision is a worst case scenario. Whatever happens, there isn't going to be a significant change on Thursday's action.

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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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