Stock Market Commentary: Tale of Two Cities

For Large Caps it was a hasty retreat but for Tech not much happened. Large Caps stayed on course to reach their 200-day MAs as Tech averages struggled to hold theirs. Most worryingly, the Semiconductor Index, having breached rising support from March lows now finished Monday below its 200-day MA.


The Semicondutor index is now looking at the 50-day MA for support. This creeping weakness has impacted on the Nasdaq and Nasdaq 100 with the MACD trigger 'sells' in the aforementioned indices.


The Dow is lagging nearly all of the key indices but has now started to outperform Tech markets even on the back of Monday's down day.


Look for further cycling of money out of Tech into the relative safety of Large Caps over the next couple of weeks.

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