Wednesday, July 20, 2011

Daily Market Commentary: Stays Near Tuesday's Highs

Bulls can be reasonably satisfied with Wednesday's action. Sellers made a not unexpected appearance, but were unable to push markets lower or scare buyers out of their positions. Selling volume was below Tuesday's buying.

The Nasdaq and Nasdaq 100 finished the day slightly worse off, only because gap open (triggered by Apple's incredible earnings) had sold off by the end of day.

The S&P held Tuesday's highs with tight trading. A break of high/lows will offer a swing trade opportunity (stop on flip side) with the likelihood of an upside break perhaps preferred.

The Russell 2000 traded a little wider on the intraday range, but still did enough to suggest bulls hold the edge.

My sector breadth study has the S&P at a reading of 48% bullishness which is as close to neutral as possible. Whatever direction the S&P goes tomorrow will likely dictate the trend for the next 5-10 days.

Follow Me on Twitter

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.

Zignals offers a full suite of FREE financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock quote watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own trading system and sell your trading strategy in our MarketPlace to earn real cash.

You can read what others are saying about Zignals on