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 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 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.
----
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!
