Thursday, April 29, 2010

Daily Market Commentary: Is the Bounce Done?

Big gains on low volume retraced much of Tuesday's losses. But the question now is whether there is the impetus on the part of bulls to push markets higher?

The S&P regained the 20-day MA although technicals remain weak. Watch for retest of former support turned resistance. If this is the case there is still plenty of scope for gains - even if the net effect is bearish.



The Nasdaq went a step further and recorded an accumulation day on strong volume. The only catch is the proximity of former support turned resistance is to current price; this rally hasn't much room to run before it encounters supply.



Small Caps enjoyed a more traditional bounce given it finished its period of weakness on support.



The same was true for the Nasdaq 100



Today was the easy day for bulls, tomorrow is a coin toss. Watch for a non-event day perhaps finishing with a narrow range doji or spinning top.

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