Monday, May 04, 2009

Stock Market Commentary: Cracks through 200-day MA

This rally just keeps chugging along. The bearish black candlesticks of two days ago in the Nasdaq has been negated and was combined with a break of the 200-day MA.

The Dow also made decent inroads towards its 200-day MA as it pulled away from former declining resistance. However, volume to the upside was very light.

The Nasdaq 100 managed a new reaction high in on-balance-volume as the index pulled away from its 200-day MA

The semiconductor index posted sizable gains as it continued to drive past its 200-day MA. The fresh MACD trigger 'buy' adds to the bulls cause although the CCI is heavily overbought (surprise surprise!). Leadership from semiconductors will be very important in the next bull market.

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.