Wednesday, October 03, 2012

Daily Market Commentary: Small Caps Blink?

Another day of 'Meh' action for the indices. The only index suggesting anything of note was the Russell 2000, but only in the context of a possible break of the bearish flag raised yesterday.  There was also a shift in relative strength away from Small Caps towards Tech indices.


The S&P had the best of the action, building on the relative shift away from speculative Small Caps to the safety of Large Cap stocks.


The Nasdaq was the least impacted by the day. On-balance-volume has triggered a 'buy'.


For Thursday, keep an eye on the 'bear flags', and the bear flag in the Russell 2000 in particular.  These look ready to break down.

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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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