Friday, April 01, 2011

Daily Market Commentary: Minor Changes

A brief respite in the buying with a drop in trading volume compared to Wednesday. The narrow trading may offer a swing trade opportunity on break of high/lows. The S&P fell slightly but is nicely set for a swing trade.



The Nasdaq posted small gains on higher volume accumulation. Looks good to push higher. The narrow trading of the past couple of days suggests a sizable one-day move will soon follow. Technicals rising along with bullish momentum but they are not overbought, another tick in favour of buyers.



Small Caps added a few more points, confirming yesterday's breakout. How will the MACD fare at the bearish divergence? So far it has played very well for bulls.



One index where bears have the edge is the semiconductor index; rebuffed at trendline resistance. A short position can trail a stop at the 50-day MA and/or declining trendline.



Rallies are overbought in the short term so losses are likely to creep in - impacting on weak indices like the semiconductor index or indices at resistance such as the Dow. Traders can look for opportunities in these two indices.

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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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