Daily Market Commentary: Sliding Along
Bulls are having a hard time acquiring the momentum to confirm a swing low. But at least the decline has been arrested. Volume eased and remains well below the distribution of the previous week.
The S&P is close to an on-balance-volume 'buy' with the MACD in pursuit.
It was a similar picture for the Nasdaq, although former support may now play as resistance.
But the Percentage of Nasdaq Stocks above the 50-day MA is firming up a swing low (and doing a better job than the index itself).
Although the Semiconductor index is heading in the other direction.
The Russell 2000 remains contained by 764 resistance despite yesterday's strong recovery. But with the 200-day MA playing as support there may be enough to make it to the 20-day MA.
Today's setup looks to favor bulls tomorrow and probably for the next few days. In addition, sectorbreadth is closer to oversold territory and in such situations the upside potential is good.
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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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The S&P is close to an on-balance-volume 'buy' with the MACD in pursuit.
It was a similar picture for the Nasdaq, although former support may now play as resistance.
But the Percentage of Nasdaq Stocks above the 50-day MA is firming up a swing low (and doing a better job than the index itself).
Although the Semiconductor index is heading in the other direction.
The Russell 2000 remains contained by 764 resistance despite yesterday's strong recovery. But with the 200-day MA playing as support there may be enough to make it to the 20-day MA.
Today's setup looks to favor bulls tomorrow and probably for the next few days. In addition, sectorbreadth is closer to oversold territory and in such situations the upside potential is good.
----
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!