Monday, November 15, 2010

Daily Market Commentary: Channel Breaks Hold

Friday saw breaks from rising channels which held for a second day. The S&P held on to the 20-day MA but the early rally ran out of steam and closed at the days low.



The Nasdaq took it a step further by breaking below the 20-day MA. The 50-day MA is the next downward target.


The Russell 2000 made it back to rising channel support. If there is upside tomorrow it's going to happen here.



The Percentage of Nasdaq Stocks above the 50-day MA had a confirmed 'sell' trigger. Other breadth indicators will likely soon follow.



Tomorrow, bulls can look to the Russell 2000 with a stop below today's lows (i.e. channel support). Shorts will find the tech averages more appealing with stops above the 20-day MA.

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