Daily Market Commentary: Pushes Higher on Light Volume
Markets continued their advance for a third day, albeit on low volume. Real supply is unlikely to kick in until indices make it back to June reaction lows - the point at which past trading range support turns into current resistance (i.e. supply).
The first index to reach this point - and push a little beyond - was the Nasdaq 100. There is an interesting confluence of 20-day, 50-day and 200-day MAs at 2,286 where two 'Death Crosses' are likely to occur, but any impact on the current rally will not be felt for a few days at least. Technicals are moving into neutral territory having bounced off extreme lows.
($NDX)
via StockCharts.com
There is a case for a bear trap in the semiconductor index. Although the index lies at a bit of a tipping point given its proximity to channel support/resistance (depending on your outlook!). Watch for leads. The challenge on the bullish front is the 20-day MA, 381, then the 50-day MA.
($SOX)
via StockCharts.com
Next on the bullish front is the Dow Jones Index. It's less than 75 points away from test a of resistance at the March reaction low. Technicals are a little more bullish, with the shift to accumulation in on-balance-volume. Although the index has already experienced a 'Death Cross' between 20-day and 50-day MAs; a confirmation for a bear trend in the short term (a 'Golden Cross' between these MAs is required to negate it).
($INDU)
via StockCharts.com
On the flip side, required leadership for a sustainable bull rally in growth stocks is a long way away when you look at Small Caps. Two 'Death Crosses' between 20-day and 50-day MAs, and 50-day and 200-day MAs are in play; an intermediate bear trend is in play and it will likely take months to reverse.
($RUT):
via StockCharts.com
Unfortunately for today, futures point to a weak start. Should such losses expand it will likely negate the nascent 'bear traps' for the Nasdaq 100 and Semiconductor index. Then next on the list comes a retest of the lows...
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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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The first index to reach this point - and push a little beyond - was the Nasdaq 100. There is an interesting confluence of 20-day, 50-day and 200-day MAs at 2,286 where two 'Death Crosses' are likely to occur, but any impact on the current rally will not be felt for a few days at least. Technicals are moving into neutral territory having bounced off extreme lows.
($NDX)
via StockCharts.com
There is a case for a bear trap in the semiconductor index. Although the index lies at a bit of a tipping point given its proximity to channel support/resistance (depending on your outlook!). Watch for leads. The challenge on the bullish front is the 20-day MA, 381, then the 50-day MA.
($SOX)
via StockCharts.com
Next on the bullish front is the Dow Jones Index. It's less than 75 points away from test a of resistance at the March reaction low. Technicals are a little more bullish, with the shift to accumulation in on-balance-volume. Although the index has already experienced a 'Death Cross' between 20-day and 50-day MAs; a confirmation for a bear trend in the short term (a 'Golden Cross' between these MAs is required to negate it).
($INDU)
via StockCharts.com
On the flip side, required leadership for a sustainable bull rally in growth stocks is a long way away when you look at Small Caps. Two 'Death Crosses' between 20-day and 50-day MAs, and 50-day and 200-day MAs are in play; an intermediate bear trend is in play and it will likely take months to reverse.
($RUT):
via StockCharts.com
Unfortunately for today, futures point to a weak start. Should such losses expand it will likely negate the nascent 'bear traps' for the Nasdaq 100 and Semiconductor index. Then next on the list comes a retest of the lows...
Follow Me on Twitter
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.
Zignals offers a full suite of FREE financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock quote watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own trading system and sell your trading strategy in our MarketPlace to earn real cash.
You can read what others are saying about Zignals on Investimonials.com.
JOIN US TODAY - IT'S FREE!
