Thursday, April 26, 2012

Daily Market Commentary: Upside Break

Better stuff from bulls.  The consolidation which has played out over the past couple of weeks broke out to the upside. Technicals improved alongside price action.

The S&P managed a net bullish shift in technicals in one day; this supported the breakout and a close above 20-day and 50-day MAs.


The Nasdaq managed to post a breakout on higher volume accumulation. Technicals aren't as positive for the S&P but are improving.


Supporting the Nasdaq is a strong gain in the semiconductor index,  The index will encounter the first of its supply zones at the 20-day MA, but the recovery has been solid.


Finally, the Russell 2000 enjoyed a breakout with a close above 20-day and 50-day MAs.  Technicals continued their improvement with a MACD trigger and +DI/-DI  'buy'.  Relative strength runs in favour of Small Caps over Tech indices (and Large Caps) and this keeps bulls in the driving seat.


Tomorrow could see a consolidation, but bulls maintain the edge and pullbacks will play as buying opportunities for now.

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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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