Wednesday, July 13, 2011

Daily Market Commentary: Fails to Hold Gains

It was a disappointing end to the day after a promising start. Indices finished near the days' lows, plus, what buying volume there was, was very light. 

The S&P continues to play at converged support of declining trendline and 50-day MA. The 'sell' in the on-balance-volume quickly reversed, although technicals are weakening.

($SPX)
via StockCharts.com

The Nasdaq hasn't yet launched a test of its 50-day MA. How will this play with respect to the S&P remains to be seen? Will the S&P lose 50-day MA support as the Nasdaq tests its 50-day?

($COMPQ)

via StockCharts.com

Semiconductors didn't even manage to post a gain. A big loss tomorrow could see June support breached. It's looking ugly for the semiconductors, although it may be the first index to truly bottom (and a key one with respect to leading an economic recovery). Semiconductors are pricing expanding trouble in the economy, much more so than the S&P, Nasdaq or Small Caps.

($SOX)

via StockCharts.com

While a second attempt on gains is likely tomorrow, it will need to be backed by volume if a rally is to build from here.

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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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