Monday, February 07, 2011

Daily Market Commentary: New MACD 'Buys'

Recent strength of the past few days undid the bearish technical pressure from mid-January with new MACD trigger 'buys' for key indices.

The S&P managed a new closing high on the back of its MACD trigger 'buy', but trading volume was light. Prices continued to rise in the middle of its channel which keeps bulls in control without advancing too far - too fast.

($SPX)

via StockCharts.com

The Nasdaq's MACD trigger 'buy' included a new closing high - although the new high occurred outside of its September-January channel; suggesting a new, slower upward channel is taking shape.

($COMPQ)

via StockCharts.com

The Russell 2000 had seen the largest pullback in its MACD from December, but recent gains did enough to switch to a MACD 'buy'. Today also registered a new closing high, but like for the Nasdaq it occurred outside of its former channel.

($RUT)

via StockCharts.com

Only the semiconductor index closed lower on the day. But it was able to maintain its breakout from last week.

($SOX)

via StockCharts.com

With technical strength reasserting itself markets are kept in bullish mode. The 20-day SMA should be looked to for support (and a buying opportunity) on the next pullback.


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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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