Daily Market Commentary: S&P Channel Support Holds

The S&P lived up to its potential with a defensive rally off the 50-day MA / channel support (take your pick). Next test is channel resistance at the 20-day MA. Technicals likely to turn net bearish tomorrow despite bullish recovery.

The Nasdaq is lingering near former channel resistance, but it's not really a significant support level.  The 20-day MA overhead will be tougher resistance.  Technical weakness expands.

The Russell 2000 bounced back, but it's lacking a logical foothold.  Relative market strength hasn't broken the flatline (unlike the Nasdaq outperforming the S&P).

For tomorrow, keep the focus on the S&P.  Can bulls follow through on the bullish recovery?

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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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