Stock Market Commentary: Gains to 20-day MAs on Volume

The Nasdaq registerd an accumulation day but stalled just shy of its 20-day MA. I have drawn in a new mini-down channel which if true will see weakness from Wednesday's open and not look back until channel support is tested.


The Dow fared a little better in it finished above its 20-day MA, but might yet succumb to channel resistance of its own


Small Caps posted an almost 2% gain but like Tech stalled at its 20-day MA, and stalled at 3-month former channel support - turned resistance. Not good news for bulls and an opportunity to short


Semiconductors mimicked small caps with the channel break and stalled rally


As for tomorrow, look for weakness to return but if bulls can pull it back in the afternoon then there is reasonable expectation for upside breaks from developing mini-down channels.


Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.

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