Wednesday, July 21, 2010

Daily Market Commentary: Bears Double Down on Bulls

Bernanke stuck a fork in the rally as markets gave up yesterday's gains. The day's highs did enough to test resistance but nothing more. Volume edged higher to mark confirmed distribution for all key averages.

The S&P is close enough to suggest a test of Tuesday's lows with subsequent targets of 1,049 and 1,011.



The Nasdaq touched channel resistance which is in close proximity to the 200-day MA; 2,152 is bulls last stand before a trip to 2,050 looks on the cards.



Small Caps reversed off the 20-day MA which itself lies close to channel resistance. Trending lower and underperforming to lead averages.



With today's disappointing action, Thursday is looking like it will be another down day for stocks.

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