Wednesday, August 12, 2009

Stock Market Commentary: Accumulation

After what could best be described as a modest distribution day bulls came back with an accumulation day. The 20-day MAs of the Nasdaq and Nasdaq 100 where were bulls made their stand.

The next couple of days are important for the Nasdaq and Nasdaq 100. The pace of the ascent has slowed but bulls have now shown their hand. If 20-day MAs break again it will be down to the 50-day MA where bulls will probably try again. The ascending channels leave room for indices to run to resistance; if they get there it will mean new highs for the rally and fuel to keep rally momentum going.

However, gains as good as they were, weren't enough to recover the 20-day MA in the semiconductor index

The trend is your friend until there is confirmation of a change; so far wobbles, but nothing concrete.

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.