Wednesday, November 28, 2012

Daily Market Commentary: Strong Finish

After an opening sell off, markets were able to stage a strong recovery to finish the day near the highs. Volume was below yesterday's, but the end day gain was of greater importance.

The S&P was able to mount a successful defense of its 200-day MA, but technicals aren't yet net bullish. The 50-day MA is the overhead target. Relative strength remained in Small Caps favour


The Russell 2000 finished at channel resistance, but not before putting some distance from its 200-day MA. As with the S&P, the 50-day MA is overhead resistance.


The Nasdaq managed to overcome the rebound off the 200-day MA, and it was able to finish a shade above its 200-day MA. The next upside target is its 50-day MA.


Today's finish sets up for a move to 50-day MAs.  Ideally, it would have been good to have seen some higher volume accumulation, but there is probably enough to see some upside follow through tomorrow.

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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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