Wednesday, May 30, 2012

Daily Market Commentary: Lost Gains

Poor housing data undid all the gains from yesterday and left the nascent rally vulnerable to further losses. The two consolations were losses were confined to the beginning of the day and didn't accelerate beyond the open, and selling volume was lighter than prior buying volume.

Despite the losses, relative strength swung back towards Large Caps and away from Small Caps.


Small Caps reversed hard without ever really challenging its 20-day MA (or former wedge support).


While the Nasdaq was left in the middle of its channel, although it did do enough to see a MACD trigger 'buy'.


The tight action - despite the loss - offers a swing trade opportunity buying/selling on a break of Wednesday's high/low with a stop on the flip side.

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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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