Daily Market Commentary: Attempting to Rally

I'm getting back into the fold after a few days down with the flu. Today was yet another attempt by bulls to make back last week's losses. The S&P was able to defend its 20-day MA with a slight uptick in volume (net accumulation). Last week's selling didn't hurt the technical picture at all - so bulls hold the advantage.


via StockCharts.com

The Nasdaq hasn't the advantage of using the 20-day MA as support like the S&P, but is instead struggling to maintain it as support.


via StockCharts.com

The Nasdaq 100 did better, gaining traction at new channel support


via StockCharts.com

Although there was no help from the semiconductor index


via StockCharts.com

The Percentage of Nasdaq Stock above the 50-day MA moved to a confirmed 'sell'; although it may only be a temporary weak phase as it turned out to be last November.

Nasdaq Percent of Stocks Above 50 Day Moving Average (EOD) ($NAA50R)

via StockCharts.com

Finally, Small Caps are lingering close to 50-day MA support but are outside of their former rising channel with a downtick in its 20-day MA.


via StockCharts.com

Bulls should be able to push on from 20-day MAs for Large Caps and Tech. Small Caps have their work cut out but the 50-day MA should act as support.

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Zignals Trading Strategy Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.

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