Tuesday, August 21, 2012

Daily Market Commentary: Bearish Reversal

A weak finish undermined the bright start markets enjoyed. Volume picked up in line with bearish distribution, lending weight to the probability for further declines in the short term.


The Nasdaq also experienced distribution and looks ready to move back to channel support.


The Russell 2000 managed to break resistance only to see it finish at the day's lows.  Todays' highs marked the upper end of resistance.


In the short term, look for further declines - likely back as far as channel support, but the overall trend remains bullish.

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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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