Wednesday, July 14, 2010

Daily Market Commentary: Tech Raises Questions

It was a tricky day for markets. On the positive side, Large Caps held their channel breakouts and are nicely positioned to build on yesterday's gains; volume eased in line with a bullish consolidation.



On the more mixed side were the Nasdaq and Nasdaq 100, in each case there is indecision at converged 50-day and 200-day MAs but the Nasdaq is also up against declining channel resistance. Technicals of each have turned net bullish so there is momentum to drive a break.



The hardest hit was the semiconductor index. After a strong day yesterday, today it finished with bearish cloud cover. Not the ideal scenario to help drive Tech averages higher.



For Wednesday keep an eye on the Nasdaq and watch for upside follow through in the S&P and Dow. Technicals suggest there is more upside in the tank but markets remain vulnerable with the sequence of lower highs and lower lows intact.

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