Wednesday, August 04, 2010

Daily Market Commentary: Large Cap Breakouts Hold For a Second Day

It started out like it was going to be a taxing day for the markets, but in the end markets finished modestly higher on light volume, doing enough to keep the rally ticking along.

The S&P held 1,118 support and is nicely positioned to push higher.



The Nasdaq still has to test June reaction high resistance, but like the S&P there is much to stop a 36 point gain to reach this point.



The Russell 2000 was able to nip a declining resistance breakout on the back of a bull cross between 20-d x 50-d MAs, but it still has June-July reaction highs to test.



The semiconductor index held on to its 200-day MA for yet another day but is struggling to break free of its 20-day, 50-day and 200-day MAs convergence.



With another few weeks to go before vacation season ends there could be some further gains to bank before the real action (up or down) kicks in.

Follow Me on Twitter

Build a Trading Strategy Business in Zignals

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 quote 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