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).

---

All Contributions Welcome - Thank You!
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!

Popular posts from this blog

S&P "Bull Trap"?

Image
I thought there was sufficient evidence to argue against a "bull trap" in the S&P, but it would appear the market wasn't interested in such thoughts and sellers were quick to reverse the initial push above 4,200.  Adding to the pain were new 'sell' triggers in MACD and On-Balance-Volume, although the former occurred above the 'bullish' zero line, making it a weak signal. Selling volume ranked as distribution as selling momentum picked up speed.  The index is also underperforming relative to the Russell 2000. 
Read more

"Black Candlesticks" are a concern for the S&P and Nasdaq

Image
A bright start for bulls on the back of positive $NVDA earnings wasn't enough to generate a day of meaningful gains.  However, it did help stall the losses of the last couple of days. The Nasdaq was the biggest beneficiary of today's action, but not enough to see an end-of-day finish that cleared last week's swing high, nor delivery of a large white candlestick, despite the morning breakout gap.  Technicals are net bullish and relative performance against the S&P has become consistently stronger since the start of May.  While today's candlestick I would view as typically 'bearish', today's volume ranked as confirmed accumulation (bullish). Overall, I would be looking for higher prices from here. 
Read more

Round 2 for the bearish "black" candlestick in S&P and Nasdaq

Image
The Nasdaq started brightly but ended up closing below its open price, but above yesterday's close. The S&P did something similar, although the intraday range is narrower. These two setups are somewhat complicated by the new 'buy' triggers in On-Balance-Volume for both the Nasdaq and S&P. And the new MACD trigger 'buy' for the S&P. Price action is key, so I would expect the candlestick to trump the technical picture; watch for lower prices tomorrow.
Read more

Archive

Show more