Thursday, August 23, 2012

Daily Market Commentary: Light Volume Selling

Selling was focused in Large and Small Caps, but Tech Stocks were relatively immune.

The S&P fell back to its 20-day MA with a MACD trigger 'sell' to accompany the selling. The next step is rising channel support.


The Nasdaq still has room to run to support.


Small Caps also have room to run to support, but continue to sharply underperform relative to Technology.  However, Small Caps do slightly better against Large Caps.


The Nasdaq 100 sits at an interesting juncture, the sell off has taken the index down to former channel resistance which offers a long side opportunity.


A day trade long opportunity may be available for the Nasdaq 100 at the channel line and the S&P 20-day MA.

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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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