Daily Market Commentary: Sellers Make First Appearance in S&P for 2012
Today was the first distribution day for the year in the S&P and the second for the Nasdaq. Despite the selling there was little change on the nature of the rally. A sequence of selling would obviously change this, but today offered little more than profit taking.
Selling in the S&P retraced some, but not all of yesterday's gains. If this is the start of a longer decline then the 20-day MA is the likely support area for buyers to make their next appearance.
The Nasdaq is in the same position, although there is a support level at 2,737 which may play as an alternative for buyers to step in.
The Russell 2000 also has the benefit of the 20-day MA which has converged with 764 support to help buyers.
The extent of today's selling volume is likely to see some follow through tomorrow. Not until 20-day MAs are tested will the integrity of the rally be known.
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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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Selling in the S&P retraced some, but not all of yesterday's gains. If this is the start of a longer decline then the 20-day MA is the likely support area for buyers to make their next appearance.
The Nasdaq is in the same position, although there is a support level at 2,737 which may play as an alternative for buyers to step in.
The Russell 2000 also has the benefit of the 20-day MA which has converged with 764 support to help buyers.
The extent of today's selling volume is likely to see some follow through tomorrow. Not until 20-day MAs are tested will the integrity of the rally be known.
------
Follow Me on Twitter
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.
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 strategy and sell it in the MarketPlace to earn real cash.
You can read what others are saying about Zignals on Investimonials.com.
JOIN ZIGNALS TODAY - IT'S FREE!
