Thursday, March 04, 2010

Stock Market Commentary: Modest Gains But No Break

The tight trading goes into a third day, keeping both bulls and bears guessing. For the Nasdaq this was a close at resistance but on lower volume; it looks ready to challenge 2010 highs.

This as even the semiconductor index dropped back to test its 50-day MA. doing so with a dragonfly doji

The Russell 2000 managed a new closing high but hasn't taken out the highs of yesterday (a potential bearish shooting star).

An upside breakout is perhaps the most likely outcome, but whatever whatever happens the tight action has built a level of tension which will unwind once the 3-day range is broken.

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