Daily Market Commentary: Election Buying

Now that the dust has settled on the election, and life can get back to normal for those in Ohio, a quick look at the market gave bulls some hope. Yesterday was a day when buyers were able to grab some bargains before they sat themselves in front of the television to watch results.  Volume increased, which marked yesterday as an accumulation day. Futures also suggest some follow through from the open.

However, it wasn't as good as it had one time looked during the day.  The Nasdaq gave back a large portion of its intraday gain by the close of business, finding resistance at its 20-day MA. This for an index working off a natural support level of a 200-day MA. A tough struggle may ensue here.


In the bull column, there is a strengthening swing low in the Percentage of Nasdaq Stocks above 50-day MA, helped by a fresh MACD trigger 'buy'.


The Russell 2000 enjoyed a decent day, falling shy of a 1% gain. But it does sit on the verge of a MACD trigger 'buy'.


The semiconductors have had the best of recent action, which is good news for the Nasdaq trying to get past its 20-day MA.  Note, the semiconductors have handily cleared their 20-day MA, and is challenging its 50-day MA (but is below its 200-day MA).


The S&P is up challenging its "Death Cross", which is another battle of interest. The current swing low at 1,403 has built off weekly support, so it will be interesting to see if it can break through overhead 20-day and 50-day MAs on the daily time frame.  It too sits on the verge of a MACD trigger 'buy'.


Today's interest will again focus on the Nasdaq, and its nascent rally off its 200-day MA, supported by strength in the semiconductor index.

---

Follow Me on Twitter


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.

Zignals offers a full suite of FREE financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock quote watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own strategy and sell it in the MarketPlace to earn real cash.

You can read what others are saying about Zignals on Investimonials.com.
JOIN ZIGNALS TODAY - IT'S FREE!

Popular posts from this blog

Nasdaq primed for breakout

S&P "Bull Trap"?

"Black Candlesticks" are a concern for the S&P and Nasdaq

Archive

Show more