Showing posts from November, 2010

Daily Market Commentary: S&P Defends 50-day MA But Bearish Turn

It's going to be a busy couple of days for 50-day MAs for all indices. The S&P was able to defend its 50-day MA, but not before gapping down off the open and trading a confirmed distribution day. The increase in selling volume was enough to register a 'sell' for on-balance-volume. ($SPX) via The Dow took weakness a step further by breaking below its 50-day MA on a net bearish turn in technicals. Worse to come? ($INDU) via The Nasdaq started with an opening gap to yesterday's low and closed the day at the same level, but it was unable to make a significant impression into yesterday's trading action. A test of 50-day MA is likely Wednesday. ($COMPQ) via The Percentage of Nasdaq Stocks above the 50-day MA is caught in a tight range, but this looks destined to break lower given the negative technical picture. Should it do so it would weigh on any test of the 50-day MA in the parent Nasdaq. ($NAA50R) via S

Daily Market Commentary: Bulls Stage a Recovery

After a post-holiday hangover markets got off to a sluggish start, but by the close of business bulls had done enough to suggest there might be some upside follow through tomorrow. The S&P was able to dig-in at its 50-day MA, but finished the day caught between its 20-day and 50-day MAs. AAAAAAAAAB S&P 500 Large Cap Index ($SPX) via The Nasdaq eased back into last Thursday's gap before recovering. Volume also picked up into the close, although it did not get to test its 50-day MA. ($COMPQ) via However, the semiconductor index held on to its breakout and if it can continue to do so over the next couple of days it will help push the Nasdaq and Nasdaq 100 past their November highs. ($SOX) via The Russell 2000 held on to its 20-day MA; 736 resistance is still a big test - a challenge for Tuesday. ($RUT) via Today's late afternoon action suggests markets will follow through higher tomorrow

Daily Market Commentary: Festive Bounce

With the long Thanksgiving weekend ahead, markets signed off with a bit of festive cheer. Volume was, not surprisingly, light. But the gains achieved were enough to reverse yesterday's losses and then some. The S&P actually managed to break declining resistance of the November decline. Bulls will use the 50-day MA as the initial trail until the 20-day MA is breached. ($SPX) via The Nasdaq used the backtest of former resistance to springboard higher, taking it above the 20-day MA once more. ($COMPQ) via The push in the Nasdaq was helped in large part by the breakout in the semiconductor index. The move above the November reaction high reversed technical weakness, creating a new MACD trigger 'buy'. ($SOX) via While the Russell 2000 was able to regain the former channel, bringing to an end the initial breakdown. Will this instead evolve into sideways trading action? ($RUT) via Friday's ha

Daily Market Commentary: Mixed Bag

Despite the obvious, it wasn't a clear cut down day. Yes, all markets closed down - but not all finished out! Volume climbed to register a relatively mild distribution day, which will be some comfort for bulls. The S&P reversed off resistance and came close to testing its 50-day MA. Tomorrow will likely see a proper test of this key moving average. ($SPX) via The Nasdaq took a big reversal hit, but held back-test support of former resistance turned support. ($COMPQ) via On the flip side, the Russell 2000 having cracked below support its subsequent rally only did enough to confirm support-turned-resistance. ($RUT) via In terms of market breadth. The Nasdaq Summation Index joined the Percentage of Nasdaq Stocks above the 50-day MA as net bearish. ($NASI) via The increasing bearish turn in supporting breadth raises the likelihood for further near term downside in markets (Nasdaq). Tomorrow's test

Daily Market Commentary: Bulls Keep Pressure on Resistance

Tech and Small Caps kept bullish momentum going, helped in large part by strength in semiconductors. Semiconductor gains were helped by the earlier bear trap at the 20-day MA. It finished the day just below a potential breakout. ($SOX) via The Nasdaq cleared declining resistance and pushed above its 20-day MA as it mounts a challenge on the November high. ($COMPQ) via The S&P stalled at resistance, but was able to recover earlier losses. ($SPX) via While Small Caps are riding below former channel support turned resistance. ($RUT) via Bullish action in the more speculative Tech and Small Caps indices is good news for buyers. Semiconductors are doing the driving and for now, 20-day MAs are the support. Follow Me on Twitter Build a Trading Strategy Business in Zignals Subscribe to one of 58 trading strategies covering US, UK, Canada, Forex, ETFs, Frankfurt, Australia or Irish Markets Dr. Decla

Weekly Review of Stockcharters: Bulls Have Options

After another lengthy break a took a step back into the stockchart mix to see what others were brewing. Anthony Caldaro of Objectiveelliotwave is looking at an intermediate fifth wave higher on the 60-min? So 1,227 is not the top for the current advance off the July low? The S&P with the Presidential cycle marked Richard Lehman of the Channelist has intermediate corrections within a long term advance. 11/18 -- Lots of short term breaks upward on higher beta charts today (at least at the minichannel level), but the Dow came right to its short term downtrend line and stopped cold. This will probably bounce further, though its too early to declare the correction over. Tomorrow is expiration. Like today, after the morning move, it should quiet down and go nowhere. 11/16 -- The correction accelerated today, asserting itself as more than just a brief respite. The dollar broke upward, stocks & commodities steepened their downtrends. This may bounce at any time, but loo

Weekly Market Commentary: Market Top

Weekly charts across indices continue to shape a market top. Technicals for the Nasdaq peaked at historical resistance with the bull trap still in play. Nasdaq via Nasdaq Breadth also honored resistance. The Nasdaq Summation Index dropped sharply from resistance ($NASI) via And the Percentage of Nasdaq stocks above the 50-day MA has confirmed its bull trap. ($NAA50R) via The S&P tells a similar bull trap story to the Nasdaq with overbought (and weakening) technicals ($SPX) via S&P Breadth indicators failed to make it to resistance for Summation or Bullish Percent indices. Plus, the Percentage of S&P stocks above the 50-day MA has played to a picture perfect top. ($SPXA50R) via So, the late bullish flourish late last week on the dailies hasn't turned the page on the weeklies. Bears hold control of the main trend. Follow Me on Twitter Build a Trading Strategy Business i

Daily Market Commentary: Bounce and Run

Yesterday's tension coiled in market's doji unwound higher with 50-day MAs providing the impetus for the drive. The S&P posted an accumulation day but closed the day against short term resistance and the 20-day MA. Bulls will have enjoyed today but tomorrow is the bigger test. ($SPX) via The Nasdaq, like the S&P, is toying with declining resistance and its 20-day MA. Tomorrow's challenges are the same. ($COMPQ) via The Russell 2000 took the recovery bounce a step further by making it all the way to the August-November channel, former-support-turned-resistance. It did enough to push beyond the 20-day MA but if morning losses were to build it could see shorts jump on the wagon. ($RUT) via The semiconductor index has gone from a bull trap to a potential bear trap - although it's not entirely convincing. However, it has managed to defend its 20-day MA. ($SOX) via Today's gain was n

Daily Market Commentary: Pause in the Decline

After yesterday's drop markets took a breather. The S&P didn't make it down to the 50-day MA at 1,166 but today's narrow range doji is a swing trade opportunity. ($SPX) via The Dow was the first of the lead indices to test its 50-day MA. Good prospects for bulls tomorrow. ($INDU) via The Nasdaq closed with a doji, but is in a no-mans land between 50-day and 20-day MAs. ($COMPQ) via Tomorrow could go either way but trading breaks of today's high/lows with stops on the flip side offers opportunity. The Dow offers the best opportunity for bulls given it finished on its 50-day MA. Follow Me on Twitter Build a Trading Strategy Business in Zignals Subscribe to one of 58 trading strategies covering US, UK, Canada, Forex, ETFs, Frankfurt, Australia or Irish Markets Dr. Declan Fallon, Senior Market Technician for , offers a range of stock trading strategies for global markets, also available

Daily Market Commentary: Down to 50-day MAs

Bears pushed the boat out a little further and took indices down towards their 50-day MA. The S&P gapped below its 20-day MA and never looked back. Look for a test of the 50-day MA tomorrow. ($SPX) via The Nasdaq is also looking at a 50-day MA test tomorrow. ($COMPQ) via The Russell 2000 failed to hold on to the rising channel. A clean break was the result. This has gone from a bulls best hope to an opportune bear trade down to its 50-day MA. Technicals rolling over to boot. ($RUT) via The semiconductor index closed with a bull trap. When the semiconductor index created a bear trap in August the subsequent rally took it back to channel resistance and beyond; will this make it back to 305? Tomorrow's first test is its 20-day MA. Break that and the 50-day MA is next. The good news for bulls is it managed a 'Golden Cross' between 50-day and 200-day MAs. ($SOX) via The next couple of days shou


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