Thursday, October 04, 2012

Daily Market Commentary: Breakout

After yesterday's suggested  breakdown in the Russell 2000, markets headed in the other direction and pushed higher. The S&P went as far as to break from the bearish flag and accelerate higher.


The Nasdaq finished the day inside its 'bear flag'. The 'bear flag' remains the dominant aspect in the near term, although today's finish was enough to see it regain the 20-day MA.


The Russell 2000 recovered enough to hold on to its 'bear flag' after yesterday's suggestion of a breakdown.


For Friday, bulls should focus on an expansion of the gain in the S&P.  If the market opens weak, look for a gap down in the Russell 2000.

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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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