Tuesday, February 07, 2012

Daily Market Commentary: Rally Ticks Along

Yesterday's low volume declines were followed by today's higher volume gains, albeit small rises in lead indices. Only the Russell 2000 suffered a mild loss.

The S&P 500 is well positioned to add to its rally as it managed a new closing high. The MACD recovered from its 'sell' trigger. The only negative is the overall lightening of the volume despite the accumulation days.


The Nasdaq is riding against channel resistance as it continues to pull away from Large Caps (in terms of relative strength).


As the semiconductor index rebounded off trendline support.


The Russell 2000 is closer to the center of its channel. It holds a small edge over the Nasdaq (relative strength).


Markets are in their most bullish alignment of Small Caps leading Tech leading Large Cap indices. With the majority of indices posting new highs there are is little in the way of overhead supply. All good for keeping the rally moving onwards and upwards.

------

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!
 
f9229fcfd1b1390be00cfccc86c90349c93a4179bf4227457c