Stock Market Commentary: In the balance

Volume picked up for a fourth day as markets decide which side of the fence they are going to play on. Large caps favour further weakness but Tech Indices are fence sitting; flat-lined moving averages are testament to the indecision. How they break will say much about the health of bulls

I have modified the semiconductor chart to show a consolidation triangle in a pattern very similar to small caps.

I like where the strength lies in the market - it just needs to show its hand more. Just look the at buying volume in the Semiconductor HOLDRs (SMH); sideways market with huge volume spikes (barely a squeak to the downside) is classic Big Money buying. Semiconductors usually show form during the early economic recovery phase. They are not there yet but this action is good.

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

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