Daily Market Commentary: Cracks Appear

The day had the potential to be a real stinker, but in the end it was Tech which took the brunt of the selling.

First up, the semiconductor index pulled further away from its 200-day MA as a pending 'Golden Cross' between 20-day and 50-day MA fast approaches. Technicals took a hit with a 'sell' trigger in the CCI.

($SOX)

via StockCharts.com

The Nasdaq gapped down to 2,344 support. The 20-day MA is fast approaching and is likely to a test tomorrow or Wednesday. There was a 'sell' trigger for on-balance-volume.

via StockCharts.com

The S&P didn't take as big a hit, but did manage a test of its 20-day MA. Technicals had already weakened with last week's 'sell' for on-balance-volume - the MACD is likely to follow suit tomorrow.

($SPX)

via StockCharts.com

So far, none of the (Nasdaq) breadth indicators suggest a top is in place. Instead, most point towards further gains.

($NASI)

via StockCharts.com

So while the easy option is to suggest more losses for Tuesday, pullbacks like these are buying opportunities until proven otherwise (just don't forget your stops!).

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