Stock Market Commentary: Treading Water

Monday's losses created a trading void between Friday's close and Monday's open - a void which saw the first excursion by bulls on Tuesday. A straight look at market percentage gain made the day look better than it was; inroads into the various index gaps were shallow and unconvincing. A larger move to the 20-day MAs will probably see shorts step up to the plate and there will be no shortage of late July early August buyers looking to head to the exits too.

There were no additional bearish turns in supporting technicals for lead indices and market volume was below that of Monday.

Rising channels hold the key. Any action between the channel lines is noise and it won't be until there are tests of rising channel support will the health of the March-August bull rally be known. For now, markets will duke it out between 20-day and 50-day MAs.

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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