Thursday, February 03, 2011

Daily Market Commentary: Trades Near New Highs

For a second day markets finished near Tuesday's highs. The S&P sits on the verge a fresh MACD trigger 'buy' and a new all-time high. Volume climbed to register an accumulation day. For bulls there is plenty of scope for the rally to push on towards channel resistance.



Intraday weakness in the Nasdaq was able to gather support at the 20-day MA. It sits only a few points away from a new closing high, although it remains outside of its former channel.



The semiconductor index was able to hold yesterday's breakout, losing just a quarter of a point. Like the S&P, it too has room to run to channel resistance.



Given the relative position of indices inside their channels, combined with a finish which held the upper range of Tuesday's close, chances favour a continuation of the rally. Watch for a morning gap as bulls look to follow through on today's buying.

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Dr. Declan Fallon is the Senior Market Technician and Community Director for 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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