Wednesday, January 18, 2012

Daily Market Commentary: Rally Ticks Along

A little disappointing markets weren't able to push on after a strong start, but many indices registered accumulation days.

The S&P finished near its October swing high, although it's in the process of turning this former resistance level into support. While stochastics are overbought, On-Balance-Volume and MACD continue to trend higher on the side of bulls.


The Nasdaq retained some of its morning gap, but it's the shift in relative strength towards this index (from Large Caps / S&P) which is the most positive. Perhaps this rally is only just beginning?


While the Nasdaq attracts interest from buyers, the Russell 2000 is losing some of its love (to the Nasdaq). However, the swing high breakout holds.


The index to watch tomorrow is the semiconductor index.  With the Nasdaq performing well it will be important it can draw on strength in semiconductors. At the moment, the index is struggling at its 200-day MA.


The rally keeps on moving higher until proven otherwise.  Tech stocks are attracting the most interest at the expense of both Small and Large Caps.

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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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