Daily Market Commentary: Wide Range Day

In the end it was a day which was difficult to pin down. The S&P and Nasdaq finished with black 'spinning top' candlesticks - potentially bearish, but there was no break of support. The S&P is very close to a 'Golden Cross' which would firm up bullish support.


via StockCharts.com

But the Nasdaq was able to go one better on a day of higher volume accumulation; is this a buying opportunity?


via StockCharts.com

Small Caps took the worst of the selling, although the technical picture looks weaker than the current price situation.


via StockCharts.com

But really, it's all about breadth, and other than the Percentage of Stocks above the 50-day MA (which has topped), other breadth indicators support a continuation of the rally.


via StockCharts.com

Friday could see the market push back (higher) but as each day passes the narrow trading range which is developing could turn into a significant supply zone should markets snap lower for just a couple of days. Bulls need to push - and push soon - if they are to keep their advantage.

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