Tuesday, June 25, 2013

Daily Market Commentary: Good Day For Semiconductors

Markets made a reasonable stab at recovering yesterday's losses. Markets gapped higher at the open, but they weren't able to build on the opening gaps. Small Caps edged the gain winners, adding just over 1% on the day. However, semiconductors had a very good day: adding 2.4%, closing above the 50-day MA and a minor channel support level - leaving behind a 'bear trap' in the process.  This should help the Nasdaq and Nasdaq 100 and offer a good opportunity for some upside follow through.


The Nasdaq 100 almost made it back to its 200-day MA. And it has been in a steady loss against the Russell 2000. A second leg down to the rising channel would offer an attractive long side opportunity.


While the Russell 2000 is about to encounter the first of overhead resistance at its 50-day MA.


Breadth metrics aren't oversold enough to mark a significant swing low, but markets have fallen enough to see a rally to 20-day MAs. Today's was a good start and there is room on short term technicals to suggest this rally has begun.

All Contributions Welcome - Thank You!

Follow Me on Twitter

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.

JOIN ZIGNALS TODAY - IT'S FREE!
 
f9229fcfd1b1390be00cfccc86c90349c93a4179bf4227457c