Daily Market Commentary: Bulls Maintain Pressure

Markets finished strong after a weak start. Volume rose to register an accumulation day, although overall volume was not particularly heavy. The rally keeps chugging along.

The S&P continued to make relative strength gains against the Russell 2000. This is good news for defensive Large Caps, but it may be a growing worry for Small Caps. It's a modest shift and not enough to turn the broader trend in favour of safe sector Large Cap stocks, but should this continue it could signal the end of the broader rally.

In morning trading the Nasdaq was trading outside of its channel, but afternoon buying was able to bring the index back inside its channel. The MACD trigger 'sell' remains in play.  With the index trading inside its channel (and at channel support) the favored outcome is for higher prices.

The Russell 2000 finished down slightly, but the index is range bound in a sideways channel. No reason to get excited, although the range bound trading means relative strength is angling away from Small Caps to Large Caps and Techs.

Another day - another gain. Tomorrow is set up to offer more of the same.

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.

Popular posts from this blog

Markets attempt a swing low for the seven day decline

Low volume selling after Russell 2000 breakout

Minor losses pressure Thursday's reversal attempt


Show more