Wednesday, September 26, 2012

Daily Market Commentary: Further Selling

Another day of losses dropped indices below their 20-day MAs. Technical weakness intensified which confirmed breaks of support.

The S&P cut below its 20-day MA with relative ease.  Channel support is next.


The Nasdaq finished just shy of a test of channel support.  It will likely complete this tomorrow.


The Russell 2000 also cut below its 20-day MA with next support around 825.


Today's failure by bulls to defend support (20-day MAs) suggests tomorrow will see some downside follow through.  The absence of buyers is a concern, although alternative levels of support can be found at channel support and/or 50-day MAs.  The Nasdaq is likely to be the first index to test the credibility of channel and/or 50-day MA support.

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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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