Stock Market Commentary: Tired Rally

The early collapse in the market had worrying tones but there was no follow through even if volume registered as distribution. The Dow has the greatest interest simply because it's in a support battle at the 50-day and 200-day MAs.

The other index to watch is the semiconductor index; the second indecisive doji after the 'shooting star' with the 20-day MA overhead is suggesting further gains are looking more and more unlikely. It's still holding the 50-day MA but I am liking a test of the 200-day MA before a run on June highs is attempted.

In defense of the markets I thought it was going to be a whole lot worse.

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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