Daily Market Commentary: Better Than Expected

Bulls are defending the May spike low not at its lows, but at the spike low's highs. The S&P finished just shy of a test of its 200-day MA, but the 20-day MA is less than 10 points from a bearish cross of the 200-day MA; a big battle is due soon! Volume was light which is a little worrying given the extent of the day's gains.


via StockCharts.com

The Nasdaq is close to yet another test of declining resistance connecting April and May reaction highs. Each test weakens resistance and with the 200-day MA acting as support the likelihood is for resistance to break. Pending MACD trigger 'buy' too.


via StockCharts.com

The Nasdaq 100 went one step better and did trigger a MACD 'buy' as the index finished just above the 20-day MA. There may also be an early stage break of declining resistance connecting April-May reaction highs.


via StockCharts.com

Tomorrow offers a great chance for bulls to cement a bottom. Breaking past declining resistance and/or 20-day MAs will firm up demand generated from the past week's trading ranges.

It's all to play for...

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