Thursday, March 07, 2013

Daily Market Commentary: Modest Gains

Today's small gain offset yesterday's modest loss. Volume eased as traders tired of the push to new highs. Supporting technicals erased the remnants of their bearish turn, but it won't take much to send them back.

The Russell 2000 rallied to put itself up against resistance. If bears are to make a return, tomorrow would offer a good opportunity to launch an attack.

The S&P has room to run to resistance. Technicals are not as in a vulnerable place as for the Russell 2000, although in relative terms, the S&P is in the process of losing ground against the Russell 2000.

While the Nasdaq is narrowing itself towards an apex of support and resistance. But, relative strength is shifting in favour of technology stocks over the S&P.

While action over the last couple of days doesn't point to much, the likelihood is there will be another blast higher.  Watch volume closely, this is a tiring  rally, but it's not dead yet.


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Dr. Declan Fallon is the Senior Market Technician and Community Director for You can read what others are saying about Zignals on