Daily Market Commentary: Positive Market Flow

It was again left to semiconductors to do all the running and this helped the Nasdaq and Nasdaq 100 close with gains.

The SOX posted another 1% gain on the back of a fresh MACD trigger 'buy' above the bullish zero line - a strong trending move. The 20-day MA has played as picture perfect support since the index cracked above its 200-day MA last October and is an excellent place below which to place a stop.


via StockCharts.com

For the Nasdaq, semiconductor strength has meant a rally which has ridden the rising channel line. The MACD has flatlined so the 'sell' is not really relevant as a signal (for now).


via StockCharts.com

Semiconductor strength has also kept the Nasdaq 100 just below its former rising channel (although I have illustrated a new, shallower channel). Technicals remain healthy, helped by the net strong gains over the past 12 months. It's the leading index at the moment.


via StockCharts.com

The other positive news came from the Russell 2000. It has struggled more at its 20-day MA but was able to finish above the moving average after tagging rising channel support. However, technically it's weaker than other averages and will likely be the first to break.


via StockCharts.com

The S&P was somewhat quiet, but held 1,260 support. There is a developing MACD and OBV 'sell' in the technicals, but with the index bissecting the rising channel it could be a while before we see a confirmed shift in the trend.


via StockCharts.com

The only worry of note was the expanded weakness in the Nasdaq Summation Index. The index undercut both 3-day and 5-day EMAs with a confirmed bearish divergence in the MACD trigger line and an earlier 'sell' in the CCI. Not a situation where you would want to be buying tech and perhaps a more prudent place to use strength to take profits.


via StockCharts.com

However, net market rally is still in play.

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.

Popular posts from this blog

Bull Flags for Nasdaq and S&P

"Inverse Hammer" on Russell 2000 Breakout

'Bear Traps' for the Nasdaq and S&P as Russell 2000 holds above support


Show more