Wednesday, June 03, 2009

Stock Market Commentary: Stalemate

A second day which had the potential to be a lot worse than, in the end, it actually was. Leading the markets down were the semiconductors; the loss of 273 support is looking more like a verified bust and it could be fast down from here. This is bad news for breakouts in the other indices but so far only the semiconductors have cracked.

The other index to struggle was the Dow as the 200-day MA continued to contain the rally.

Tomorrow will be another chance for bears to flex their muscle but with summer trading in play it might be another mixed day of trading.

Watch those breakouts for follow through.

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.