Daily Market Commentary: Support Holds
There were modest, low volume losses in the market, but the bulk of Friday's gain was retained. The S&P held its 20-day MA and dipped below 1,260 - but probably is close to enough to still be considered at support. In the meantime, the S&P 'bull traps' are still in play.
The Nasdaq spent another day below its 200-day MA after Friday's close finished just below the moving average. The index remains well above 2,616 support.
Meanwhile the Russell 2000 closed on converged 20-day MA and 731 support. This may yet evolve into a third 'bull trap', but for now its trading at support.
While today's losses didn't knock out support a fresh loss tomorrow certainly will. Bulls will need to get up early to keep markets at these levels otherwise a push down to 50-day MAs will be on the cards. Watch Futures for leads.
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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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The Nasdaq spent another day below its 200-day MA after Friday's close finished just below the moving average. The index remains well above 2,616 support.
Meanwhile the Russell 2000 closed on converged 20-day MA and 731 support. This may yet evolve into a third 'bull trap', but for now its trading at support.
While today's losses didn't knock out support a fresh loss tomorrow certainly will. Bulls will need to get up early to keep markets at these levels otherwise a push down to 50-day MAs will be on the cards. Watch Futures for leads.
-----
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 Trading Strategy Marketplace 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 strategy and sell it in the MarketPlace to earn real cash.
You can read what others are saying about Zignals on Investimonials.com.
JOIN ZIGNALS TODAY - IT'S FREE!
