Wednesday, December 15, 2010

Daily Market Commentary: Bears Pop In

After a quiet two days the market took a probable first step in the direction of its next move; this step been down. The S&P posted a small loss and will look to the 1,227 reaction high and then its 20-day MA for support.



The Nasdaq made another run at the 2,646 high, but it eased to the lows of the day by the close.



The semiconductor index continued its move towards its 20-day MA and lower channel support.



It was a similar story for the Russell 2000, closing with a shooting star, although its current high is more isolated from nearby support.



Based on today's action there is probably enough weakness from the close to see some follow through lower tomorrow. Selling volume is unlikely to be high, so view this as part of a low key pullback.

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