Daily Market Commentary: Tug of War Continues

It has been a struggle between bulls and bears for the past week; each day alternating between buyers and sellers. Today belonged to sellers. Volume was lighter than yesterday, marking a lack of conviction on the part of sellers to drive the market lower.

The index best positioned to bounce on Friday is the Dow. It finished the day very near the 200-day MA, offering a natural entry point for buyers.

The Nasdaq was rebuffed at support-now-resistance and currently has a target of 4,245 and/or the 200-day MA.  Stops/Risk measured on a close above 4,380.

The Russell 2000 was rebuffed from newly drawn channel resistance. Lower prices with a May low retest looks probable.

Finally, the Nasdaq 100 is another index trading close to channel support and the 50-day MA. It's another good long candidate for Friday.

For Friday, look for long opportunities in the Dow and Nasdaq 100. A weak open should look for short opportunities in the Russell 2000 while the downward channel holds.

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