Thursday, May 13, 2010

Daily Market Commentary: Techs lose 50-day MAs

While the S&P honored 50-day MA resistance which it had failed to break yesterday, the Nasdaq wasn't able to maintain its hold above the 50-day MA. Early gains took the Nasdaq up to the 20-day MA but in the end it finished near Wednesday's low.




Small Caps, which had been leading the markets higher, stumbled at the 20-day MA after it pushed through its 50-day MA yesterday. The 'spinning top' marks indecision so it is by no means certain bears have control.



The semiconductor index also struggled at declining resistance.



Friday is likely to see lower prices given the presence of declining resistance and/or 20-day/50-day MAs. In addition, the willingness of buyers to defend Monday's rally will be a key factor in how far markets fall over the next couple of days.

Follow Me on Twitter

Build a Trading Strategy in Zignals; Read how and earn real money (once out of Beta) in this PDF.

Dr. Declan Fallon, Senior Market Technician for, offers a range of stock trading strategies for global markets, also available through the latest rich internet application for finance, the Zignals MarketPortal or the Zignals Trading Strategy MarketPlace.

Zignals offers a full suite of financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock list watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too.

Build your own trading system and sell your trading strategy in our MarketPlace to earn real cash.

Read what others are saying about Zignals on