Tuesday, January 24, 2012

Daily Market Commentary: Low Volume Consolidation

Despite missing yesterday's update there was little to split today's or yesterday's action. The only index to attempt to put some distance on the two days was the Russell 2000. Small Caps again attempted to retake the leadership role off Tech stocks as relative strength swung back in their favour; there was even a 'Golden Cross' between the 20-day and 200-day MAs.

The S&P had two flat days, but technicals kept ticking higher at the expense of a loss in relative strength against the Russell 2000.

While the Nasdaq posted a small point gain as Tech stocks continued to pull away from Large Caps.

Bulls have the most to be happy with as indices continue to post gains as relative strength pushes more towards speculative issues (=> attracting money from the sidelines).


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