Wednesday, October 07, 2009

Stock Market Commentary: Stalling at Resistance

The Nasdaq made modest gains, enough to take it above its 20-day MA but perhaps not enough to clear mini-channel resistance. It was the kind of day to register a gain on paper but produce little in reality.

Small gains in the Russell 2000 weren't enough to register a close above the 20-day MA, or reverse the channel breakdown.

The SOX closed lower on the day

So - in the end little changed on yesterday. Odds favour bears, but a strong opening hour would probably set the tone for a decent afternoon given the proximity of prices to resistance.

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.