Wednesday, April 28, 2010

Daily Market Commentary: Temporary Defense By Bulls

No surprise to see modest recoveries in the indices but it was a mixed bag in terms of the significance of today's buying

For the S&P look to the 20-day MA to play as resistance as the bounce matures.



But small caps were able to hold trend support



And the Nasdaq 100 also defended channel support with a hammer (but given stochastics are not oversold its significance is reduced)



So while support is available to hold, don't expect bulls to capitulate as easy as it had looked the past couple of days. However, a larger pullback is required if the rally is to continue in the long term.

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