Daily Market Commentary: Consolidation

Markets eased up on light volume, consolidating Friday's gains. The semiconductor index suffered the worst of the selling, but its losses were well within the boundaries of a pullback.

While the Russell 2000 flashed a potential bearish harami cross; look for a retracement to the rising trendline.

But the Nasdaq finished well placed to push higher. The chief concern would be an exponential blowout top, but so far nothing indicates this is about to happen.

The S&P had a very low key day with little to say about it.

Tight action could offer a trade opportunity off a break of the high/lows with a stop on the flip side, but the broader trend remains bullish and trades with a perspective longer than the next couple of days would be best to stay on the right side of the market.


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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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