Daily Market Commentary: "Golden Crosses"

Markets experienced low volume trading, with slight losses on Friday's close. The biggest change was a couple of "Golden Crosses" for certain indices between 50-day and 200-day MAs, a long term bullish signal.  Another reason to suggest the next fall will be a buying opportunity.

The S&P had little to show on the day, "Golden Cross" or otherwise. The long standing relative shift to Small Caps has been running since the end of November, but this looks to be slowly changing in favor of Large Cap stocks.

The Russell 2000 inched higher, although technicals are heavily overbought and the MACD is close to a 'sell' trigger.

The Nasdaq 100 was one of the indices to develop a "Golden Cross"; the Nasdaq already experienced its  "Golden Cross" a couple of weeks ago. There was a MACD 'sell' trigger which offset a new On-Balance-Volume 'buy' trigger.

The semiconductor index also finished the day with "Golden Cross" between 200-day and 50-day MAs.  Bullish action in the semiconductor index is a key driver of the rallies in the Nasdaq and Nasdaq 100, and this is likely to remain the case in the weeks ahead.

Tomorrow is likely to see more light action.  Markets are too overbought to suggest the rally has much room to run.  Although when markets take their next swing down it should offer a good buying opportunity.


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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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