Daily Market Commentary: Buyers Post Late Day Gains

While today wasn't a follow through on yesterday's buying, it did count as a bullish day.  Afternoon buying undid the morning sell off, breaking the alternative buy/sell sequence which has been in play for the past couple of weeks. Volume dropped off, which undermines the bullish picture a little, although it also means there isn't a scrum of sellers looking to get out.

The S&P is pressuring 1,564 resistance.  Doing so would effectively confirm a new MACD trigger 'buy' and confirm the relative strength switch from Small Caps to Large Caps.


The Nasdaq spent another day holding on to 20-day MA support. On-Balance-Volume pulled further away from its 20-day MA. But with the bearish wedge in play there is a support/resistance to consider. The 20-day MA could act as a place for trailing stops for long positions.


The Russell 2000 had the best of the day's action, managing to finish above its open price.  Watch for a follow through break of 954.


Bulls hold the edge into tomorrow. The tight action with a preference to finish near the days' highs suggest this market rally will continue.

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. You can read what others are saying about Zignals on Investimonials.com.

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