Thursday, March 21, 2013

Daily Market Commentary: Small Gain

After a couple days worth of selling, bulls made a brief reappearance on day. Volume was down on yesterdays, suggesting little enthusiasm to this rally from bulls. It does mean the indices are again close to resistance, which means the chance for further substantial gains is diminished.

The S&P still looks to be on course for a MACD trigger and On-Balance-Volume 'sell'. So today's gain looks like nothing more than a stay-on-execution by bears.

The Nasdaq highlighted how the bulk of the gains were confined to premarket, and there was little desire to push the markets higher over the course of the trading day. Yesterday's On-Balance-Volume 'sell' trigger was reversed, but not the one from the ADX.

The Russell 2000 managed an almost 1% gain. It benefited from its leadership roll back from when the November rally started, and the relative relationship to the Nasdaq (and S&P) got a further boost today.  If you are looking for an index to be buying, this is the one to trade.

Tomorrow may lean towards bulls again.  For despite the lackluster gains, there is little in the way of resistance until indices make it back to channel tramlines.  The Russell 2000 doesn't even have this to consider, so it may have the most to offer those looking for the rally to continue.


Follow Me on Twitter

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