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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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.
----
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!
