Thursday, June 14, 2012

Daily Market Commentary: Bulls Push for an Advantage

It was a good day for bulls with a higher volume accumulation day logged. The buying favored Large Cap indices over Small Caps or Tech and it may be the job of the S&P to lead this rally out.

The S&P is fast approaching channel resistance with 'buy' triggers for the MACD, On-Balance-Volume and Directional Movement Index. The swing low of 1,306 is a place for a stop.

The Russell 2000 crept above the 200-day MA, but isn't close to breaking out of the consolidation in play since May. However, relative strength is attempting a second swing in favor of Small Caps over Tech.

The Tech Index that had been doing the most running - at least for the first part of 2012 - has broken from its channel. Nasdaq 100 technicals have lost a little of their mojo but there is still a clear MACD 'buy' in place.

For the past week it has been a sequence of up-down-up-down... A consecutive up day would do much to inspire sideline money to participate.  Traders will probably prefer the volatility of the Russell 2000, but the S&P might be the one to benefit from a breakout.


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Dr. Declan Fallon is the Senior Market Technician and Community Director for 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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