Daily Market Commentary: Early Start to Rally?

Big gains, but not much volume, opened the week brightly. It's a good start for a swing low, although this will require a decent test over the coming days.

The S&P was able to close above it 200-day MA, but technicals didn't manage much improvement.  Can Large Caps lead out? The S&P is showing a relative gain against the Russell 2000, and will soon take out its relative reaction high from July; making it an index leader

The Nasdaq enjoyed a more powerful 1-day rally, but it's a long way from even its 20-day MA, let alone the 200-day MA. The 20-day MA will be its next resistance test.

The Russell 2000 finished the day with a 'Death Cross'. despite the rally. There was a slight improvement in technicals, but supply can be expected to kick in at its 20-day MA.

Tomorrow will probably see some easing, but a swing low test will be need to confirm a market bottom.


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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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