Daily Market Commentary: Little to Report

Yesterday's low volume gain sowed a seed of doubt into the strength of the buying. While expanding technical weakness further tilted things towards sellers. However, today's action didn't see a rush to the exits and trading volume was again light. Moving averages are offering resistance, but a modest gain will be enough to break many them.

The S&P was repelled by the 50-day MA as the MACD and On-Balance-Volume builds towards a new 'buy' trigger despite the net bearish technical picture.

The Nasdaq gave back intraday gains, but didn't impinge on Monday's premarket gap. It will be important for the gap to hold if 2,441 is to be treated as a swing low of a new rally.

The Russell 2000 traded tight around its 50-day MA with very little intraday movement. Swing traders may want to play a break of Tuesday's high/low with a stop on the flip side of today's range.

One can't read too much into today - Moving Average resistance is the key take home point, but light volume precludes any strong conclusion.

Leave it to Wednesday to gauge where this rally is going (if anywhere)


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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 Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.

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