Monday, August 12, 2013

Daily Market Commentary: Low Volume Losses for S&P

Monday was a low key affair. Minor losses and low volume in the S&P offered little to either side. The Nasdaq added a few points, but not enough to change the larger picture. It still trades inside the rising channel, but there wasn't enough from bulls to challenge channel resistance.


The Russell 2000 opened below its 20-day MA before rallying above the line. The index continues to honor the rising channel, although technicals are mixed.


The S&P is still below its 20-day MA, but close enough to offer a quick reversal on the return of buyers. Technicals are weakening, but losses are unlikely to break the bullish hold (for now).


The good news for bulls is the buying observed in the semiconductor index. Should buyers continue their accumulation after today's defense of channel support then there is a good chance of a continuation of the rally in the Nasdaq and Nasdaq 100. The initial outlook is positive; traders can look to buy the semiconductor index on the long side:


Otherwise, there was little to add on today's action.


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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com.
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