Daily Market Commentary: Consolidation

Friday's gains were offset by Monday's low volume decline. The damage was relatively limited, although markets remain primed for further weakness.

The S&P is well above declining resistance, turned support, although On-Balance-Volume again switched to a 'sell' trigger.

The Nasdaq is still protecting the large breakout gap.  Although it's struggling a little to reverse the downward trend for On-Balance-Volume.

While the Russell 2000 traded in a very narrow intraday range.  This is looking very bullish.

For Tuesday, watch for further consolidation.  Beware of a big sell off in the first hour, because this could instill fear in the market, and lead to a bigger push into the breakout gaps.


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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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