Thursday, January 22, 2009

Stock Market Commentary: Higher Volume but little else

Not surprisingly, on a day which followed a big up day (which followed a big down day), the markets were effectively unchanged. Volume did rise, so bulls and bears were busy doing battle (MSFT vs AAPL too). The higher volume registered as a distribution day but given the markets traded inside yesterday I wouldn't consider it a major shift to bears - although bears held the advantage going into today based on the indices relative position to their moving averages.

The only technical note was a lost of mid-line support in stochastics for the tech averages and small caps, enough so to turn the SOX and Russell 2000 net bearish.

Dr. Declan Fallon, Senior Market Technician, the free stock alerts, market alerts and stock charts website