Daiyl Market Commentary: Low Volume Rally
After days of selling it had to happen bulls would get one day of joy. The only problem was the lack of volume. A push to the 20-day MA would offer something for today's buyers as well as give shorts an angle to attack.
The S&P didn't quite make it to its 200-day MA.
Neither did the Nasdaq
Although the hardest hit indices enjoyed the best of the rebound Monday. After crashing through its 200-day MA on Friday the Russell 2000 returned over 2% to take back its long term moving average.
The semiconductor index also gained over 2%, but it hasn't yet reached a natural support level on which a strong rally can be based, but it may still have enough to see a test of the 200-day MA.
Tomorrow will be interesting. Given the lack of volume it's hard to see the momentum continuing, but an open gap up would not be surprising. Of the indices, the Russell 2000 has an opportunity to work support off its 200-day MA.
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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 didn't quite make it to its 200-day MA.
Neither did the Nasdaq
Although the hardest hit indices enjoyed the best of the rebound Monday. After crashing through its 200-day MA on Friday the Russell 2000 returned over 2% to take back its long term moving average.
The semiconductor index also gained over 2%, but it hasn't yet reached a natural support level on which a strong rally can be based, but it may still have enough to see a test of the 200-day MA.
Tomorrow will be interesting. Given the lack of volume it's hard to see the momentum continuing, but an open gap up would not be surprising. Of the indices, the Russell 2000 has an opportunity to work support off its 200-day MA.
----
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!
