Daily Market Commentary: More of the Same

In an extension of yesterday's lackluster action markets traded in a relatively tight range.  The Russell 2000 got the best of the day's action, adding nearly 0.5% in an attempt a push into overhead resistance around 820.

Tech averages also gained, finishing slightly higher, but on light volume.

The semiconductor index is trading at dual support of the 20-day MA and horizontal support of 396, a good place for a long trade.  A push higher in the semiconductor index will help long-side positions in the Nasdaq and Nasdaq 100.

The S&P was able to hold its 20-day MA but with a new bearish cross in on-balance-volume.  The index is trading in the middle of a rising channel and could go either way.

Again, bulls should stick to Tech and the Semiconductor Index.  Bears can look for a break in the 20-day MA of S&P - although it too currently offers a long side opportunity at this average.


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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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