Daily Market Commentary: Modest Accumulation
Small gains on a slight uptick in volume helped bulls defend support. Both the Nasdaq and Nasdaq 100 maintained their advance within the boundaries of their channels The S&P edged higher, undoing yesterday's losses. While the semiconductor and Russell 2000 dug in at their respective 20-day MAs, but neither could undo the earlier trendline breaks.
There was a swing towards Small Caps from Large Caps; although there is a broader shift to Large Cap stocks dating back to the start of February.
The Nasdaq added almost a 1%, but the gain wasn't enough to reverse the MACD trigger 'sell' for the index.
While the semiconductor index recovered from an intraday loss of its 20-day MA to finish the day just above it. However, technical weakness continues to expand, so it's likely this defense of the 20-day MA won't build into a lasting rally.
The Russell 2000 posted the largest one-day gain. The index is developing a sideways consolidation with clear support/resistance. This consolidation should break higher given the direction of the feeder trend; stops can go below support.
For tomorrow, look to Small Caps for leads. A move past 833 resistance might be enough to pull the other indices with it.
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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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There was a swing towards Small Caps from Large Caps; although there is a broader shift to Large Cap stocks dating back to the start of February.
The Nasdaq added almost a 1%, but the gain wasn't enough to reverse the MACD trigger 'sell' for the index.
While the semiconductor index recovered from an intraday loss of its 20-day MA to finish the day just above it. However, technical weakness continues to expand, so it's likely this defense of the 20-day MA won't build into a lasting rally.
The Russell 2000 posted the largest one-day gain. The index is developing a sideways consolidation with clear support/resistance. This consolidation should break higher given the direction of the feeder trend; stops can go below support.
For tomorrow, look to Small Caps for leads. A move past 833 resistance might be enough to pull the other indices with it.
----
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!
