Tuesday, April 19, 2011

Daily Market Commentary: Opportunities at 50-day MAs for Small Caps and Dow

It was a low volume consolidation for most markets, recovering a little more of the losses from Monday. A couple of indices offer upside opportunities.

The Dow has perhaps the clearest opportunity given it opened at the 50-day MA and pushed on a little. Technicals dropped a little further, but potential buyers might look to take advantage on the premise of a challenge on 12,400 resistance; stops on a loss of the 50-day MA.

($INDU)

via StockCharts.com

The Russell 2000 suffers a little more with indecision. Today's spinning top candlestick reflecting the doubt. However, it hasn't yet violated the 50-day MA in four days of trading and a stop on a loss of 816 might appeal, as might a thrust lower which was to recover as quickly as it went down (i.e. a push which knocked out the likely set of existing stops below 816).

($RUT)

via StockCharts.com

Look to these two indices tomorrow to offer some trading opportunities. If the market was to open weak, then the semiconductor index is the one likely to suffer most.

($SOX)

via StockCharts.com

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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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