Tuesday, June 12, 2012

Daily Market Commentary: Low Volume Recovery

Yesterday's decline was undone by a fresh round of low volume buying. Large Caps were again the main beneficiaries but all indices posted gains.

The Russell 2000 started the day below its 200-day MA but managed to do enough to close above this key long term moving average.  Today's low is a good place for a stop if looking at a longer term buy-play.  There was a resistance breakout in the MACD trigger line.

The Nasdaq is setting itself up for a channel breakout with the MACD trigger 'buy' and a pending On-Balance-Volume 'buy'.

The S&P managed to recover the most ground to Monday's losses.  The 20-day MA held as support with the next upside target the 50-day MA.

For Wednesday, look to Large Caps to press their gains and drag Tech indices and Small Caps along for the ride.


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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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