Stock Market Commentary: Unfufilled Promises

Markets looked ready for a short term snap back but so far it has failed to materialise. The SOX went at it alone and looks vulnerable with the falling 20-day MA about to cut below the rising 50-day MA. A break of the 50-day MA would send shorts covering and kick start a 1-2 week rally this market looks ready to offer (only a short covering rally though).

Buyers with a longer time frame will look to the 200-day MA for low risk long-side opportunities.

The Semiconductor HOLDRs (SMH) are likely to test the breakaway gap. True breakaway gaps don't fill so anything below $20.75 puts the bullish picture at risk.

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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