Wednesday, October 13, 2010

Daily Market Commentary: Bulls Press On

It was another day where Bulls again kept control of the market. There was yet another accumulation day to add to the bull column. The biggest winners were the Dow as it pushed past channel resistance - toasting the last of the shorts.



And the Russell 2000. It enjoyed a solid advance of over 1% in what is a very narrow and acute channel.



The only disappointment was the semiconductor index. Looks like it did its hard work yesterday!



Have we now to look at new channels? For the S&P there is a broader channel which broke today (as it did for the Dow) and a tight, narrow channel, similar to what is seen in the Russell 2000.



Today's gains adds a different perspective to the move started in August. The likely outcome is this rally will continue to a test of resistance of the narrow, trending channels - not just for the S&P and Russell 2000, but for the Nasdaq, Nasdaq 100 and semiconductors too.

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