Daily Market Commentary: Net Accumulation
Buyers returned after two days of low volume gains. Gains coincided with breaks of supply, chiefly the 20-day MA in the S&P and the 50-day MA in the semiconductor index.
Starting with the S&P. The index pushed above its 20-day MA (something the Dow couldn't achieve) at the same time relative strength shifted from Large Caps to Small Caps (bullish).
($SPX)
via StockCharts.com
The Nasdaq was able to cut through its September 'bull trap' and head towards a test of converged resistance at 2,616 and declining 50-day MA.
($COMPQ)
via StockCharts.com
Nasdaq breadth (as marked by the Summation Index) is on the verge of a net bullish signal. This would offer a bullish environment for the Nasdaq of a few weeks at least.
via StockCharts.com
Although the Nasdaq 100 was pegged back by its 50-day MA (and is close to wedge resistance)
($NDX)
via StockCharts.com
The semiconductor index left no doubt. It blew past its 50-day MA setting up a challenge on 381 resistance. Technicals are very close to turning net bullish. Even if a broad market sell off was to occur there is probably enough demand here to see any retest of August lows as a buying opportunity.
($SOX)
via StockCharts.com
For the purpose of making whole, the Russell 2000 had a quiet day. It managed to move above its 20-day MA, but not enough to trouble its 'bull trap'.
($RUT)
via StockCharts.com
For tomorrow, keep an eye on the Nasdaq 100. It's close to channel resistance with the 50-day MA pressuring - shorts are likely to want to take a pot shot here first. If the market makes early gains, then the Nasdaq at converged 50-day MA and 2,616 resistance is the next area to watch for activity from shorts. The worry for the S&P is it's proximity to support. Despite three days of gains it would only take one big sell off to break support and lead markets lower.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Zignals Trading Strategy Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.
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Starting with the S&P. The index pushed above its 20-day MA (something the Dow couldn't achieve) at the same time relative strength shifted from Large Caps to Small Caps (bullish).
($SPX)
via StockCharts.com
The Nasdaq was able to cut through its September 'bull trap' and head towards a test of converged resistance at 2,616 and declining 50-day MA.
($COMPQ)
via StockCharts.com
Nasdaq breadth (as marked by the Summation Index) is on the verge of a net bullish signal. This would offer a bullish environment for the Nasdaq of a few weeks at least.
via StockCharts.com
Although the Nasdaq 100 was pegged back by its 50-day MA (and is close to wedge resistance)
($NDX)
via StockCharts.com
The semiconductor index left no doubt. It blew past its 50-day MA setting up a challenge on 381 resistance. Technicals are very close to turning net bullish. Even if a broad market sell off was to occur there is probably enough demand here to see any retest of August lows as a buying opportunity.
($SOX)
via StockCharts.com
For the purpose of making whole, the Russell 2000 had a quiet day. It managed to move above its 20-day MA, but not enough to trouble its 'bull trap'.
($RUT)
via StockCharts.com
For tomorrow, keep an eye on the Nasdaq 100. It's close to channel resistance with the 50-day MA pressuring - shorts are likely to want to take a pot shot here first. If the market makes early gains, then the Nasdaq at converged 50-day MA and 2,616 resistance is the next area to watch for activity from shorts. The worry for the S&P is it's proximity to support. Despite three days of gains it would only take one big sell off to break support and lead markets lower.
-----------
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!
