Friday, April 01, 2011

Daily Market Commentary: Minor Changes

A brief respite in the buying with a drop in trading volume compared to Wednesday. The narrow trading may offer a swing trade opportunity on break of high/lows. The S&P fell slightly but is nicely set for a swing trade.

($SPX)

via StockCharts.com

The Nasdaq posted small gains on higher volume accumulation. Looks good to push higher. The narrow trading of the past couple of days suggests a sizable one-day move will soon follow. Technicals rising along with bullish momentum but they are not overbought, another tick in favour of buyers.

($COMPQ)

via StockCharts.com

Small Caps added a few more points, confirming yesterday's breakout. How will the MACD fare at the bearish divergence? So far it has played very well for bulls.

($RUT)

via StockCharts.com

One index where bears have the edge is the semiconductor index; rebuffed at trendline resistance. A short position can trail a stop at the 50-day MA and/or declining trendline.

($SOX)

via StockCharts.com

Rallies are overbought in the short term so losses are likely to creep in - impacting on weak indices like the semiconductor index or indices at resistance such as the Dow. Traders can look for opportunities in these two indices.

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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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