Daily Market Commentary: Small Caps Excel

It was a day for Small Caps to shine as an almost 2% gain took the Russell 2000 above its 20-day MA. However, the gain wasn't enough to regain former channel support - so while the days' rally looks impressive - the Russell 2000 finished at resistance. There was a consolation, the CCI switched back to a 'buy' signal.


via StockCharts.com

The percentage gain was considerably smaller for Large Caps. However, there was enough of a move to register a new closing high for the S&P. Volume traded was light.


via StockCharts.com

The Nasdaq gained almost a 1% and worked off its 20-day MA. But it sits outside of its former channel and faces the same challenge as the Russell 2000.


via StockCharts.com

For tomorrow it could be more of the same. Rallies are intact and 20-day MAs are playing as support. While channel resistance is a factor, because it's rising resistance it's not particularly restrictive.

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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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