Daily Market Commentary: Markets Pop Higher

In what amounted to a follow through from days of inaction, markets took a step higher on some decent volume (accumulation). 

The index to make the most of the leap was the breakout - albeit of rising channel resistance - in the Nasdaq 100.

Next on the hit list is a challenge to clear 2,790, but it's looking good for tech stocks.

Helped in part by some strong recovery action in Semiconductors; note the rise in relative strength between Semiconductors and the Nasdaq 100 since the July swing low.  This is an indication of leadership from bullish-economic sensitive sectors; good news going into 2013 for the economy.

Small Caps were another index to shine. There was a solid pop above mini-resistance of 803 and heading into an area of resistance around 820.

If there is a cautionary tale it's in the VXN.  It's fast approaching its all-time low from 2005. This in itself isn't an immediate problem, but it started a gradual rise which eventually culminated in 2008 crash (although it took the best part of 3 years from that point to happen).

But altogether, it was a solid day for indices.


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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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