Daily Market Commentary: Festive Bounce
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.
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'.
Friday's half-days worth of trading is unlikely to shed any light as to what lies ahead for December. The lack of volume disguised the true intentions of today's buying. But with 50-day MAs nearby there is a natural support level available from which buying risk can be assessed.
Enjoy the holiday and this blog will be back on Monday!
Follow Me on Twitter
Build a Trading Strategy Business in Zignals
Dr. Declan Fallon, Senior Market Technician for Zignals.com, 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 Investimonials.com.
JOIN US TODAY - IT'S FREE!