Monday, April 06, 2009

Stock Market Commentary: Low Volume Easing

Markets fought off a copy cat reversal from the January reaction high, closing near the highs as opposed to the day's lows. From a technical perspective the selling didn't reverse any of the recent breaks; chiefly the nudge over declining resistance in the Russell 2000 and the break of Jan/Feb/Mar highs in the Nasdaq 100

The only real point of contention was the nick above November reaction high for the Semiconductors achieved on Friday was reversed.

So will Tuesday weaken in line with overbought market breadth, or break convention and push higher? I still favour the former but the afternoon rally was impressive.

Dr. Declan Fallon, Senior Market Technician, the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.