Daily Market Commentary: Tech Take the Glory

Monday started poorly with weak Futures and this remained the theme throughout the day for Large and Small Cap stocks. However the Nasdaq and Nasdaq 100 were able to beat the malaise and put in a strong finish.

The Nasdaq 100 had the best of the days action. Friday saw the push above converged resistance and 200-day MA on higher volume accumulation and today saw the breakout maintained. The Nasdaq 100 is the first index to turn net bullish technically.

via StockCharts.com

Technicals for the Nasdaq turned net bullish today, although consolidation resistance has yet to be breached and the 200-day MA is a long way from been challenged.

via StockCharts.com

Supporting rallies in the Nasdaq and Nasdaq 100 is the semiconductor index. Unlike the aforementioned index it closed over 1% lower, although it did so after challenging resistance in the 381-385 range. The index has its 50-day MA nearby to lend support on this pullback.

via StockCharts.com

Tomorrow's focus should stay with the Nasdaq 100 (with help from the semiconductor index). The Nasdaq 100 has been by far the best index for 2011 and it looks ready to build on its leadership. Reported action in any other index is just noise.


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