Daily Market Commentary: Small Caps lead
($RUT)
via StockCharts.com
Strength in Small Caps likely kept shorts wary on attacking 50-day MAs for Large Cap and Tech averages; in the case of the Nasdaq it was able to close above its 50-day MA, but a declining 20-day MA is only 25 points away and may provide supply on Thursday. Relative strength swung back in favour of Tech over Large Caps.
($COMPQ)
via StockCharts.com
And Small Caps over Large Caps - where the 50-day MA remained resistance.
($SPX)
via StockCharts.com
Semiconductors also enjoyed the day and closed above its 50-day MA with declining resistance in play for Thursday
($SOX)
via StockCharts.com
We have seen three strong days in a row after four hard days down. Is there the confidence to build on this or will the market drift lower for a couple of days? Babak of TradersNarrative makes a good case for buying but market breadth can and has been lower in the past. Having said that, I have used BP's troubles to take another nibble for my investment account; I have about 30% of what I plan invested.
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