Daily Market Commentary: Rally Steps Higher

The S&P jumped higher after yesterday's narrow range. Volume climbed over yesterday but it was still relatively light - a mild accumulation day at best. So far, no reason to suggest the rally is done yet.


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The Nasdaq gapped higher from the open but was unable to take advantage with an intraday continuation. Rising support remains the cut-off line.


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The Russell 2000 keeps its upward momentum running inside its narrow channel


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But the real winner was the semiconductor index. It gained nearly 2% and finished just shy of channel resistance. Technicals are very bullish with a clear MACD trigger 'buy' above the bullish zero line.


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Can tomorrow bring more gains? Or will a retreat offer a buying opportunity? The Nasdaq is closest to rising support, which if tested will offer a good entry point. For large gaps, look for a test of Wednesday's open - but the retrace shouldn't take back more as this would risk a bull trap (false breakout).

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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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