Stock Market Commentary: Bulls Dig In

The late morning selling had the potential to trigger a run of stops but buyers returned to push markets back towards their 50-day MAs. Volume rose to register accumulation days for many of the markets - keeping markets on track for a more sustained rally. The Nasdaq 100 did the some good legwork by working itself above former 1,814 support and a bull cross in on-balance-volume.

The Russell 2000 did its best with a large bullish engulfing pattern at oversold short term conditions and a bull cross of the 50-day MA. There should be enough for a follow through to the 20-day MA.

The S&P has the best defined risk:reward with the bullish hammer at channel support on oversold stochastics enabling a 'buy' with a stop on a loss of Wednesday's lows.

Look for bulls to get a little more out of this Thursday, but as 20-day MAs fall into range bears will eventually gain the upper hand and likely send the indices towards their 200-day MAs.

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