Thursday, June 06, 2013

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?

---

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