Daily Market Commentary: Tech and Small Caps Breakout
Going forward bulls will be looking for some narrow trading around Tuesday's highs, preferably on lower volume.
($SPX)
via StockCharts.com
The Nasdaq's gains, while also on low volume, are close to triggering a 'buy' in on-balance-volume. The 50-day MA is the next upside target at 2,762.
($COMPQ)
via StockCharts.com
It was a similar picture for the Russell 2000, putting it well on its way to test channel resistance. The 50-day MA is currently at 821, or just 4 points away.
AAAAAAAAD Russell 2000 Small Cap Index ($RUT)
via StockCharts.com
On a final point, the percentage of Nasdaq Stocks above the 50-day MA confirmed a bear trap. The next rally in the Nasdaq is underway.
Nasdaq Percent of Stocks Above 50 Day Moving Average (EOD) ($NAA50R)
via StockCharts.com
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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