Monday, June 20, 2011

Daily Market Commentary: Low Volume Gain

Given the woes in Greece (and the Eurozone at large) it was a relatively nondescript day for US indices. There were low volume gains across lead indices, but nothing to change the current downward trend.

The S&P trades within last week's volatility so not enough to push it one way or the other. There was a 'buy' trigger in on-balance-volume. However, it will soon be influenced by a squeeze between 20-day and 200-day MA which will force bull/bear hands.

The Nasdaq is hanging on to 2,616 support but remains under its 200-day MA. Technicals are all bearish.

The Russell 2000 is building a swing trade at support. Prices are coiling into a pennant which typically breaks in the direction of the trend (which should be down). But support may be sufficient to see an upside break. The CCI has moved to a 'buy' trigger.

Finally, the semiconductor got a brief respite from the selling, but it was nothing more than a respite. Remains on course to test channel support.

Can support hold? Or will semiconductors continue to decline - bringing Tech, and likely remaining indices, with them.

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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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