Daily Market Commentary: Technicals Turn Net Bullish
While indices gave up some of their intraday day gains by the close of business, there was a more bullish turn in the technical picture of each.
The S&P had the best of today's action. There was a break of declining resistance on modest volume, but it wasn't enough to break 1,260 resistance.
The Nasdaq finished with a potential bearish 'shooting star' just below 200-day MA resistance. Volume climbed a little to register an accumulation day. Can tomorrow see the break of the 200-day MA?
The Russell 2000 pushed inside prior trading of the 'bull traps', but unlike the S&P and Nasdaq, has room to go before getting to its 200-day MA.
The semiconductor index finished a couple points below 381 resistance, but it too saw a net bullish turn in technicals.
What this means for tomorrow is more difficult to decipher. Indices are positioned at resistance, be it 200-day MAs or a horizontal price point, so lower prices are favoured in the short term. But with 'long term' technicals net bullish the outcome for the first quarter of 2012 is more likely to be positive; buy the pullback???
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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 S&P had the best of today's action. There was a break of declining resistance on modest volume, but it wasn't enough to break 1,260 resistance.
The Nasdaq finished with a potential bearish 'shooting star' just below 200-day MA resistance. Volume climbed a little to register an accumulation day. Can tomorrow see the break of the 200-day MA?
The Russell 2000 pushed inside prior trading of the 'bull traps', but unlike the S&P and Nasdaq, has room to go before getting to its 200-day MA.
The semiconductor index finished a couple points below 381 resistance, but it too saw a net bullish turn in technicals.
What this means for tomorrow is more difficult to decipher. Indices are positioned at resistance, be it 200-day MAs or a horizontal price point, so lower prices are favoured in the short term. But with 'long term' technicals net bullish the outcome for the first quarter of 2012 is more likely to be positive; buy the pullback???
-----------
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!
