Tuesday, November 22, 2011

Daily Market Commentary: Small Losses

For a fifth day markets kept ticking lower (with the exception of the Nasdaq 100), although losses were light. Technicals continued to weaken alongside price; ironically, there was a net bearish turn in technicals for the Nasdaq 100 - the index which had been leading.

Today's low was slightly lower than yesterday's, with the bulk of the trading occurring within the lower half of yesterday's trading. Going by memory, 'Black Friday' has traditionally been a good day for the market, so tomorrow may be an opportune moment to take early advantage of a possible half-day rally.


The Nasdaq 100 was the only index to close higher. The gap is a tempting draw for short term long plays, but the net bearish turn in technicals is a more worrying omen.


The Russell 2000 was defending its 50-day MA and finished today below this moving average; but it's still close enough to offer itself as a support play at the moving average.


Will buyers jump the gun and bid up the market tomorrow, or will they wait for Friday to grab a bargain?

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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 Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.


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