Monday, April 22, 2013

Daily Market Commentary: Nasdaq 100 Net Bearish

Bulls came to the rescue at support, but there was a general lack of conviction on the part of buyers to build something meaningful. The Nasdaq 100 turned net bearish technically, but the attempt at support has already pulled one indicator back. However, look for it to struggle at 2,825.


The semiconductor index clung on to the April swing low, but it's below the rising channel line and is also net bearish. This weakness is what's spreading to the tech indices. If this takes another roll downwards it will take Tech indices with it.


Nasdaq breadth remains poor, and weakening.  As Breadth is not oversold, further declines are likely for  Nasdaq Breadth, Nasdaq, and Nasdaq 100.


So it looks like this rally over the past two days may be nothing more than a relief rally. The Nasdaq 100 will be running into resistance tomorrow. How well will it perform?

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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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