Monday, November 14, 2011

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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