Thursday, September 26, 2013

Daily Market Commentary: Buyers Make an Appearance

It was a modest defense, but buyers stepped in to break the decline. Short term traders can play long positions with a stop on a break of this week's low.

The S&P can alternatively use the 20-day MA as an alternative support. Today confirmed a 'Golden Cross' between 20-day and 50-day MAs.


The Nasdaq and Nasdaq 100 emerged from the bull flag in what should amount to a measured move higher.  If the measured move evolves to its true extent there could be another 200 points in the Nasdaq 100 (the better of the two indices).


The Russell 2000 inched a break of 1,077, but it needs a little more to convince. However, it's well priced for buyers with a stop on a loss of 1,070.


The semiconductors index lost a little ground, but continues to hug rising support - a buying opportunity.


It remains a short term buyers market. The overbought state of the market has been temporarily relieved, which gives room for another push higher.  However, it's a market you need to keep your eye on as a larger correction is not too far away.

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