Thursday, March 15, 2012

Daily Market Commentary: Markets Inch Higher

Markets managed to post a gain without negating resistance, but indices which had suffered most Wednesday were today's winners; namely the Russell 2000 and Semiconductor index.

The Russell 2000 finished bang on resistance.  A nice 2-day price handle is in place, helped by an upticking 20-day MA which can be used for trailing stops.  The MACD completed the bullish picture with a new 'buy' trigger.


The Semiconductor index also got the benefit of a buyer's surge, so much so it has turned net bullish. Technically, it looks as if 438/440 will be breached - but one can't take anything for granted!


The resurgence in the Semiconductor index should help the Nasdaq post new highs. Today's 0.5% gain on modest volume did enough to keep the headlines rolling, but it wasn't a particularly noteworthy day.


The S&P keep chugging along, doing slightly better against the Nasdaq, but losing gradual ground against the Russell 2000 (which is overall bullish for the market, even if it results in the S&P lagging).


Overall, the bullish setup remains - perhaps more so with technicals finding a second wind.  I didn't think the March pullback was a buying opportunity, but those who took advantage are sitting pretty.  For Friday, watch for a breakout in the Russell 2000.

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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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