Monday, June 16, 2014

Daily Market Commentary: Contained Rally

Disappointing action after bulls attempted to build on Friday's stall in the decline. The Russell 2000 had the best of the action as it suggested a breakout from the bullish flag.  Bulls could look to buy with a stop on a loss of Friday's low. The next challenge is to clear declining resistance connecting March and June swing highs.


The Nasdaq finished with a bullish engulfing pattern, although with stochastics overbought the importance of the pattern is weakened. However, there is a good argument for a bullish flag, with potential breakout opportunity tomorrow if bulls can maintain today's buying.


Finally, the S&P did very little, although it did manage to sneak an accumulation day.  There isn't much of a pattern shaping up in the index at the moment, other than a probable test of the 20-day MA.


For tomorrow, look for some follow through in the Russell 2000 and a 'bull flag' breakout in the Nasdaq.

Back to USA - Ghana...

---

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!
 
f9229fcfd1b1390be00cfccc86c90349c93a4179bf4227457c