Thursday, September 06, 2012

Daily Market Commentary: Powerful Rally

Positive economic data helped fuel a powerful rally, led by a breakout in the Russell 2000. The Russell 2000 continued to outperform the Nasdaq and S&P as Small Caps cleared resistance defined by April, June and August swing highs. This break sets the groundwork for advances in other indices.


The Dow rallied off rising support in a typical trendline bounce.  It also managed a resistance break on higher volume accumulation.


The Nasdaq 100 went a step further and managed a new all-time high, also on higher volume accumulation. Technicals are in good shape with the MACD trigger 'sell' close to reversing.  A pullback to 2,800 could offer opportunity for buyers.


Even the struggling the semiconductor index was able to regain the 20-day MA. Watch too for a new MACD trigger 'buy'.


Looks like the tone has been set after 2 weeks of quiet trading.  Bulls take an early start on proceedings.

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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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