Daily Market Commentary: Bulls Take Over
Yesterday was a quiet day for indices, but there was no doubts who took control today. The semiconductor index maintained its bullish form with another good day of gains. The semiconductor breakout has performed very well after a successful second attempt. A series of bearish days would be welcome to consolidate the advance.
Value players will have been pleased with the bullish engulfing pattern. The Russell 2000 opened at its 200-day MA and finished strongly. The four day decline is looking like a bullish flag which is riding along the 50-day MA. Another buying opportunity?
The Nasdaq continues to challenge right-hand-side shoulder resistance of a bearish reversal head-and-shoulder pattern. Shorts will probably be aggressive here because of it, but another day's worth of gains will force them to cover.
The S&P had the quietest of the action. The swing trade probably stopped out after the weak open quickly undercut Tuesday's low before the rally kicked in. Bulls keep control without making the index look like a buy.
As for tomorrow, same as before - except for the S&P. The Russell 2000 probably has the best long term prospects for bulls.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com.
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Value players will have been pleased with the bullish engulfing pattern. The Russell 2000 opened at its 200-day MA and finished strongly. The four day decline is looking like a bullish flag which is riding along the 50-day MA. Another buying opportunity?
The Nasdaq continues to challenge right-hand-side shoulder resistance of a bearish reversal head-and-shoulder pattern. Shorts will probably be aggressive here because of it, but another day's worth of gains will force them to cover.
The S&P had the quietest of the action. The swing trade probably stopped out after the weak open quickly undercut Tuesday's low before the rally kicked in. Bulls keep control without making the index look like a buy.
As for tomorrow, same as before - except for the S&P. The Russell 2000 probably has the best long term prospects for bulls.
---
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!
