Thursday, January 16, 2014

Daily Market Commentary: Minor Changes

Today consolidated Monday's reversal swing with low volume, minor losses for the S&P, and small gains for the Russell 2000 and Nasdaq. The rate of advance has not surprisingly slowed, setting up tomorrow for a chance of small losses.

The Russell 2000 successfully tested breakout support with all technicals net bullish. Bulls probably have the best opportunity to bank gains in this index tomorrow.

The Nasdaq edged up a handful of points as the MACD triggered a 'buy'. Should the Nasdaq experience a loss on Friday, look for support at the rising channel.


The loss in the S&P was part of a very narrow intraday range. The 20-day MA is available to lend support on any continuation of today's loss tomorrow. Overhead, there is no resistance.  Of the three mentioned indices, technicals are weakest.


For Friday, look to the Russell 2000. While the rate of advance has slowed, strong technicals and no overhead resistance provides bulls an opportunity to turn up the gas, and catch bears expecting a reversal.

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