Stock Market Commentary: Tech Ticks Higher on Respectable Volume

The semiconductors were the days winner as the early June bull trap converted into a new consolidation handle; all part of the March-June rally. Also adding to the bulls cause was a break of the bearish divergence in the MACD, a negated 'sell' trigger from the CCI and a switch in relative strength back in favour of semiconductors over the Nasdaq 100.

The net effect of this was to reduce the risk of a downward break in both the Nasdaq and Nasdaq 100 as was initially feared when the bull trap emerged in the semiconductors. Both aforementioned indices were able to make modest gains on higher volume.

As I had commented in my Zignals blog post yesterday it is looking more probable we won't be seeing a significant downleg emerge - or at least a downleg which undercuts the May lows to any significant degree.

Onwards and upwards?

Want to win the Trader's Business Plan prize?

[1] Register at Zignals.
[2] Go to Charts and select a stock (you will be prompted to download Microsoft Silverlight)
[3] Click on the YourCall Icon

[4] Enter a Call by giving a stop and target price; make sure the Time Period is set to Short (month)
[5] Enter as many calls as you like up until the end of June; these can be long or short signals
[6] Send me your Zignals Userid so I can track the calls made ( or post it in the comments section of this post. In your email make reference to the competition.
[7] The Zignals member with the stock giving the highest return from either a target hit or expiration after 22 trading days will win the prize. Only stocks or FX prices listed on Zignals qualify for entry (no pink sheet stocks). The announcement of the prize winner will be made at the end of July.

Good luck!

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.

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