Monday, November 12, 2012

Daily Market Commentary: Low Volume Consolidation

Light trading over the Veteran's day holiday did little to change the broader picture.

The S&P remained at its 200-day MA, generating what looks like a whipsaw signal for on-balance-volume. The S&P remains the last of the key indices to hold this moving average, it will be a difficult task for it to hold in such light.


The Nasdaq posted a small loss, but it looks ready to make another leg lower.


While the Russell 2000 will be looking for support around 760. It currently trades around a minor support level of 795.


Today's trading was clouded somewhat by the holiday.  Tomorrow will give a clearer picture as to what the week holds. Breadth does not suggest a significant swing low is in play, but a relief rally is well within the realms of possibility.

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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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