Thursday, September 05, 2013

Daily Market Commentary: Low Volume Gain

Indices which started the day just below moving average resistance, finished the day still stuck under such resistance, despite the minor gains posted. Only the Nasdaq came into the day without such resistance to worry about and it was able to put some to its 20-day MA.


Meanwhile, the semiconductor index posted two days of strong gains, breaking through 20-day and 50-day MAs on improving technicals. This will continue to fuel the advance in the Nasdaq.


The Russell 2000 finished at converged 20-day and 50-day MAs. Will tomorrow offer the upside breakthrough?


And the S&P remained penned in by the 20-day MA.


Tomorrow will offer a do-or-die chance for the Russell 2000 and S&P: any upside will see a breakthrough, anything else will be taken as a resistance confirmation and an opportunity for shorts to get busy.  The Nasdaq has already cleared such resistance, so look for it to lead higher (and is the best opportunity for longs with strength in the semiconductor index).

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