Thursday, July 26, 2012

Daily Market Commentary: Powerful Rally

The bulk of the gains were achieved at the open, but it was a good day for bulls who applied pressure to shorts acting on the break of the channel - leaving behind a 'bear trap'.

The S&P offered a good example with the 50-day MA playing as support. Today's rally regained former channel support and inched above the breakout line defined by the April swing low.


The rally in the Nasdaq achieved a little more; it finished yesterday below the 50-day MA but managed to regain both it and channel support today. Bulls may find more on offer tomorrow.


Although Nasdaq breadth is under pressure with a net bearish turn in technicals for the Nasdaq Bullish Percents


Small Caps just about regained the 50-day and 200-day MA on what was a relatively flat day (doji); 764 key support and place for stops if a buyer.


Friday offers bulls a chance to push their advantage.  Today's 'bear traps' are the first step, but there is a chance for more tomorrow.  Stops go on a loss of yesterday's lows.

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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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