Monday, December 17, 2012

Daily Market Commentary: Solid Rally on Good Accumulation

The weekly charts left me thinking this would be a weak week, but Monday's action has thrown this negative outlook into doubt.  It was a solid gain, with markets gaining over 1% on higher volume accumulation.  It has set up the rest of the week nicely.

The S&P worked a rally off its 50-day MA, with a 'Golden Cross' between the 20-day and 50-day MA likely to occur tomorrow.


The Nasdaq is stuck in an interesting juxtaposition.  The 50-day MA is above to generate a 'Death Cross' to its 200-day MA , while at the same time, the 20-day MA is about to go 'Golden Cross' on the 50-day MA! The index itself rallied from its 20-day MA, to close above both 50-day and 200-day MAs.


The Russell 2000 got the best of the action. It found support at 825 with a fresh 'Golden Cross' between 20-day and 50-day MAs. The index remains well placed to challenge 868 into the early part of 2013 - Fiscal Cliff or not.


The frequency of posts is likely to diminish as the week moves on and the holidays get closer.  However, the picture remains good for bulls, barring some major upset in the market (which seems unlikely).

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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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