Daily Market Commentary: Rally off Support

The bearish weekly picture is going to dominate for the next few weeks, but the rally off support emerged on the daily timeframe for the S&P and Russell 2000.

The Russell 2000 likely offers the best upside in the days ahead. Today's boost off support confirms the importance of 820, and as a place below which to set stops.

Likewise, the S&P rallied off channel support, but technicals remained net bearish (as they did for the Russell 2000).

The Nasdaq is the most oversold of the indices, but is also the index lacking a strong support level from which to build a sustainable rally. I have drawn a thin line of support from the August lows as a possible location for stops.

Although the Nasdaq 100, oddly, has reached a support trendline.

It will be important today's lows are not undercut in the days ahead.  If we are looking at swing lows for the indices, then the buck stops at Monday'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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