Thursday, May 16, 2013

Daily Market Commentary: Distribution

Not surprising given the gains in recent weeks, but sellers made their presence felt on higher volume. The good news was there was no real damage done to the trend, and technicals remain buoyant.

The S&P kept its nose above the rising channel. An undercut would set this up for a move back to channel support.


The Nasdaq is well above resistance, and the heavier selling didn't really do much damage at a point level. Not much more to add to this.


The semiconductor index remains inside the rising channel. Today's selling more noise within the larger bullish trend.  This remains bullish for the Nasdaq.


The Russell 2000 is holding on to its relative advantage against the Nasdaq.


Bulls to continue the onslaught? It's going to take a number of consecutive selling days to break this trend.

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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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