Tuesday, January 06, 2009

Stock Market Commentary

Markets shrugged off overbought conditions to post gains on higher volume. The day registered as an accumulation day for all key indices. One watch area is declining resistance for the Nasdaq 100 dating back to late summer; a break will set a precedent for the other indices to follows

Biggest winner on the day was the semiconductor index with a 5% gain. It too is approaching late summer declining resistance with room to challenge the 200-day MA should it break - again, this would provide a boost for the other indices.

So which resistance level will come into play?

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