Thursday, January 24, 2013

Daily Market Commentary: Higher Volume Trading, But Apple Doesn't Kill Rally

Apple's earnings were always going to weigh on today's action, but markets held up well.  The Nasdaq did shed near 1% on a significant increase in volume, but it didn't negate the breakout. Technicals remained in the bullish camp with little loss in strength.



The Nasdaq 100 also experienced the Apple drop, but it's more range bound than the Nasdaq.  Technicals  shifted negative with 'sell' triggers in the MACD and On-Balance-Volume.  However, until 2,700 breaks the overall action remains bullish.


The S&P churned, but technicals held their ground.  Note, the 10% threshold to shift towards profit taking (selling covered calls) is 1,534. A couple more 1% days will be enough to do it. It's getting close, but it's not there yet.


The Russell 2000 has already reached the 10% threshold.  Mean reversion will kick in soon.


For Friday, prepare to take profits in the Russell 2000, with the S&P likely to follow soon.  It will be important for the Nasdaq to hang on to its breakout for other indices to maintain their strength.

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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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