Tuesday, April 20, 2010

Daily Market Commentary: Bounce Day 2

The second day of the bounce saw more inroads into Friday's losses. Whether the S&P recovered from the breakdown is up for discussion but volume was disappointing compared to Friday's selloff. Technicals edged lower but there was no significant shift to the bears side (i.e. no new triggers).


via StockCharts.com

Small Caps had the best of the days action with over a 1% gain (good news for bulls with speculative issues leading on the day). The CCI 'sell' trigger from Friday was negated and rising support from February lows held.


via StockCharts.com

Tech was lackluster with the Nasdaq 100 neutral doji on a MACD 'sell'; looking vulnerable for Wednesday. Swing trade the doji (use 1% stop on flip High/Low)


via StockCharts.com

Of breadth indicators the Percentage of Nasdaq Stocks above 50-day MA has its own problems with the bearish cross of 5-day EMA on MACD, plus Relative Strength and CCI trigger 'sells'. Note bearish divergence in MACD trigger line too.


via StockCharts.com

Sentiment and lead indices are turning more bearish; time for profit taking despite Tuesday's gains.

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