Tuesday, May 01, 2012

Daily Market Commentary: Large Cap Buying / Small Cap Selling

A day of contrasts for the market.  All indices weakened into the close, but Large Caps were able to retain most of their gains but Small Caps gave back the bulk of theirs.

The S&P was able to register an accumulation day on improving technical strength.


But the Russell 2000 finished near the day's low, but not before it managed an almost 2% gain intraday.


Nasdaq trading was closer to the Russell 2000 than S&P.  Relative Strength continued to shift away from Tech to Large Caps - which is bearish in the long run (except for Large Caps!).


But the Dow is very close to pressing a new breakout.


So for Wednesday it's looking like it will be left to Large Caps to lead with the Dow best positioned to push higher.  Aggressive players may want to go long the Russell 2000 with a stop close to 814.

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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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