Thursday, September 15, 2011

Daily Market Commentary: Important Tests

After a continuous sequence of gains markets have approached areas of potential (strong) resistance. The only indices with room to maneuver are Large Caps: S&P and Dow.

The S&P has plenty of room before it gets to channel and 50-day MA resistance. Other indices are more likely to influence tomorrow, so expect Large Caps to follow - not lead.


The Nasdaq finished at converged 2,616 and 50-day MA resistance. Shorts will be chomping to take down the 4-day rally; will they succeed?



Resistance in the Nasdaq 100 is a little stronger given convergence resistance is at the 200-day MA, not 50-day MA. The main plus is the net bullish turn in technicals.


While the semiconductor index also has resistance to overcome at 381.


Small Caps did little today and are unlikely to do too much tomorrow.

All eyes should be on Nasdaq, Nasdaq 100 and Semiconductors with shorts likely to be first out of the stalls tomorrow.

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