Monday, February 14, 2011

Daily Market Commentary: Russell 2000 Testing Former Support

With the S&P and Nasdaq trending in the middle of their upward channels it was left to the Russell 2000 to offer something of interest.

The Russell 2000 rallied to take it to former support turned resistance. At Monday's close there is limited upside unless supply at the channel is breached. Technicals are all bullish so it may be a slow reversal, starting with a doji (or some form of indecision) tomorrow.

($RUT)

via StockCharts.com

The semiconductor index managed a new closing high after a successful defense of converged breakout support and its 20-day MA.

($SOX)

via StockCharts.com

Tomorrow offers some potential for bears in the Russell 2000 at channel resistance, but trend followers are likely to stay long.

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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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