Stock Market Commentary: Gains Keep On Rolling

The indices posted minor gains, but more importantly retained the gains from Monday. The S&P even managed a minor accumulation day. Channel bands hold.


Small Caps delivered the best performance, gaining just over half of percent and is on the verge of a MACD trigger 'buy'.


Tech indices were held up by the bearish harami in the semiconductor index. With the recent 'buy' trigger in the MACD on a weak ADX it's not a very potent reversal signal but with a stop over 378 there is a built in protection.


The Percentage of Nasdaq Stocks above the 50-day MA cracked over the bearish divergence, climbing to 69%; but this is well off peaks of 86% in 2003 and 83% in 2009.

Short covering continues for another day.

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