Daily Market Commentary: Good Day For Bulls

It was a good pick up by buyers as positive economic data helped drive markets higher.  Volume was somewhat light which dulled the gain, but some of the creeping bearishness in the indices was repelled by today's action.

The Russell 2000 negated the 'bull trap' for a second time as the 20-day MA retained support.  A quick move above 847 could see Small Caps go on a little run as relative strength has begun to swing in its favor after a couple of months of under-performance relative to Tech stocks.


The Nasdaq may have slowed its December advance, but it is trading well above its 20-day MA with decent volume.


The S&P went a step further than both aforementioned indices and managed a new closing high for the rally, albeit on the lowest volume gain for the indices.


While the S&P has yet to make it past 2007 high's it has taken on a leadership role over the past couple of months. Small Caps will soon be take on this mantle, but until then, Large Caps hold the cards.

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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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