Thursday, May 01, 2014

Daily Market Commentary: Breakout Friday?

It didn't happen. The Dow managed to keep itself pegged by resistance, but it didn't lose enough ground to suggest the breakout is no longer in play. It comes down to Friday, can it succeed?


The S&P also finished little different to yesterday, which means it can either breakout, or reverse as part of a bearish head-and-shoulder pattern.


The Nasdaq was able to push a small gain, finishing above its 20-day MA, but closing on an indecisive candlestick. However, there may be enough momentum to see this post a challenge of the 4,177 swing high, and beyond. Bulls have the advantage.


The Russell 2000 experienced the indecision of no-mans-land, caught between the boundaries of 200-day MA support and 20-day MA resistance. The wide range doji doesn't give a clear advantage one way or the other.


Friday offers another opportunity for markets to deliver on the promise on offer before today.

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