Thursday, May 03, 2012

Daily Market Commentary: Small Caps Take The Heat

The Selling was mixed, but it was Small Caps which took the brunt of the selling.  In the Russell 2000 there was a loss of 814 support, but it was able to dig its heel in at the 20-day MA.  But it's getting more sketchy for longs. The index is looking to resume its under-performance against Tech and Large Caps, which is really bearish all round...


The S&P was able to hang on to its breakout, leaning on the 50-day MA for support.


There is an opportunity for longs to take advantage of 50-day MA support in the Nasdaq, although it could be a slippy slope if the index was to take a loss tomorrow.


For tomorrow it will be a case of bulls digging in at the open, but if after an hour there is no sign of buyers it could turn into a very long day.

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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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