Daily Market Commentary: Powerful Rally
The bulk of the gains were achieved at the open, but it was a good day for bulls who applied pressure to shorts acting on the break of the channel - leaving behind a 'bear trap'.
The S&P offered a good example with the 50-day MA playing as support. Today's rally regained former channel support and inched above the breakout line defined by the April swing low.
The rally in the Nasdaq achieved a little more; it finished yesterday below the 50-day MA but managed to regain both it and channel support today. Bulls may find more on offer tomorrow.
Although Nasdaq breadth is under pressure with a net bearish turn in technicals for the Nasdaq Bullish Percents
Small Caps just about regained the 50-day and 200-day MA on what was a relatively flat day (doji); 764 key support and place for stops if a buyer.
Friday offers bulls a chance to push their advantage. Today's 'bear traps' are the first step, but there is a chance for more tomorrow. Stops go on a loss of yesterday's lows.
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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 offered a good example with the 50-day MA playing as support. Today's rally regained former channel support and inched above the breakout line defined by the April swing low.
The rally in the Nasdaq achieved a little more; it finished yesterday below the 50-day MA but managed to regain both it and channel support today. Bulls may find more on offer tomorrow.
Although Nasdaq breadth is under pressure with a net bearish turn in technicals for the Nasdaq Bullish Percents
Small Caps just about regained the 50-day and 200-day MA on what was a relatively flat day (doji); 764 key support and place for stops if a buyer.
Friday offers bulls a chance to push their advantage. Today's 'bear traps' are the first step, but there is a chance for more tomorrow. Stops go on a loss of yesterday's lows.
---
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!
