Daily Market Commentary: Consolidation

After recent gains it was inevitable there would be a rest day. Today was a perfect consolidation with a close  near yesterday's highs and lower volume selling.  Technicals continued to improve.

The Nasdaq turned net bullish as action was concentrated above the 50-day MA.  The narrow intraday range offers a swing trade opportunity on break of day's high/lows.

It was the same story for the Russell 2000.

The S&P continues to lead technically and is the index best positioned to make further gains.

As long as selling volume remains light it will keep the rally alive.


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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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