Tuesday, September 14, 2010

Daily Market Commentary: Pause in Rally

After a string of gains across lead markets today saw a pause as marked by today's narrow day doji / small white candlesticks. The best of the action came from semiconductors. Here, the makings of a larger bear trap emerged following August/September weakness. The close above 330.90 offers a platform for bulls to work from - The 50-day MA is the next challenge.


via StockCharts.com

The semiconductor warm glow was seen in the Nasdaq 100; note touch of resistance.


via StockCharts.com

And the Nasdaq was able to strengthen its consolidation breakout on the back of higher volume accumulation.


via StockCharts.com

While the S&P was relatively unmoved:


via StockCharts.com

For tomorrow, keep an eye on the semiconductor index and watch performance at its 50-day MA. A break of this offers room for a move to the 200-day MA which will give Tech indices a chance to pull away from their consolidations and strengthen the rally. All to play for.

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