Daily Market Commentary: Modest Gains on Higher Volume

What the market took yesterday was given back today. Higher volume swung things in favour of bullish accumulation. The S&P continued to advance neatly between support and resistance of its channel.


via StockCharts.com

Likewise for the Nasdaq


via StockCharts.com

The Russell 2000 returned to former channel support - now resistance. Yesterday's attempt to initiate a downward move was out done by today's rally. The rally likely triggered fresh short covering as new highs solidified. Can shorts provide pressure tomorrow?


via StockCharts.com

For Thursday, again look to the Russell 2000 to provide bear side pressure. Other indices only have the trend to look too and a period of indecision is a worst case scenario. Whatever happens, there isn't going to be a significant change on Thursday's action.

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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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