Monday, November 29, 2010

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)


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.



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.



The Russell 2000 held on to its 20-day MA; 736 resistance is still a big test - a challenge for Tuesday.



Today's late afternoon action suggests markets will follow through higher tomorrow. However, if markets were to gap down off the open I would then look for a powerful move down as it would undermine the raison d'etre for today's buying and drive a rush to the exits.

Follow Me on Twitter

Build a Trading Strategy Business in Zignals

Dr. Declan Fallon, Senior Market Technician for, offers a range of stock trading strategies for global markets, also available through the latest rich internet application for finance, the Zignals MarketPortal or the Zignals Trading Strategy MarketPlace.

Zignals offers a full suite of financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock quote watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too.

Build your own trading system and sell your trading strategy in our MarketPlace to earn real cash. Read what others are saying about Zignals on