Monday, April 29, 2013

Daily Market Commentary: Tech Breakout

While volume was anemic, Tech indices managed to push a breakout.  Technicals returned net bullish while the Nasdaq moved to outperform against the S&P. A 'bull trap' will be created on a close below 3,300.


The Nasdaq 100 similarly inched a breakout, although the overall rate of advance is slower than for the Nasdaq.


The semiconductor index almost managed to lead the indices out.  Typically, this sector does the leading, but for the breakouts in the Nasdaq and Nasdaq 100 to hold, then the semiconductor index has to move higher soon...


However, the Russell 2000 still has work to do, although technicals are net bullish. The first stop line is the low from Friday, then the 20-day MA, and finally the swing low at 898. But a push higher, if it's going to come, should emerge in the next day or two.


Today's action leaves things nicely primed for bulls to follow through. Tech averages have set the tone, it's now up to the S&P and Russell 2000 to follow suit.

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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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