Stock Market Commentary: Second Day of Gains
Second day of gains which were worth more to large caps than tech or small caps. For the S&P there was a close above the 1,100 as the S&P picked up relative strength against the Russell 2000 (large caps outperforming small caps). This may have left a substantial bear trap which could force a third day of big gains. However, even with two days of gains, stochastics of the S&P only just edged out of oversold conditions to give a 'buy'.
The Russell 2000 outlined some of the difficulties the indices face in the days ahead as intraday strength stalled out at the 50-day MA. On the plus side there was a CCI 'buy' signal.
Techs struggled even though it registered an accumulation day
For Wednesday keep an eye on large caps as the best chance for a short covering rally is in these indices (S&P and Dow) but it may be short-lived (morning?) if other indices don't participate.
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The Russell 2000 outlined some of the difficulties the indices face in the days ahead as intraday strength stalled out at the 50-day MA. On the plus side there was a CCI 'buy' signal.
Techs struggled even though it registered an accumulation day
For Wednesday keep an eye on large caps as the best chance for a short covering rally is in these indices (S&P and Dow) but it may be short-lived (morning?) if other indices don't participate.
Dr. Declan Fallon, Senior Market Technician for Zignals.com, offers a range of stock trading strategies for global markets under the user id: ‘Fallond’, ‘ETFTrader’ and ‘Z_Strategy’ available through the latest rich internet application for finance, the Zignals Dashboard; many are ranked in the top-20 for 3-month and YTD performance.
Zignals offers a full suite of financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock list watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own trading system and sell your trading strategy in our MarketPlace to earn real cash. Read what others are saying about Zignals on Investimonials.com; ranked top-20 software product out of 285 listed. Join today - it's free!
