Monday, March 19, 2012

Daily Market Commentary: Small Caps Breakout

It was a generally quiet day for the markets with indices adding less than a 1% on light volume.  The only index to make an impression was the Russell 2000.  It finally broke to new highs, clearing February's congestion zone at 833. Technicals remain in good shape.


Next on the to-do list is the semiconductor index; can it clear 440?


And lend its weight to the Nasdaq rally?


The rally gathers momentum. Can the Russell 2000 build on today's breakout? Can strength in the Nasdaq generate a breakout in the semiconductor index? If there is a bearish turn then shorts will be most active in these indices as these have underperformed to date.

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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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