Daily Market Commentary: Small Gains

It was going to be hard to expect a good follow through from yesterday's buying, but today didn't disappoint with markets retaining most of the gains.

The S&P even managed to finish with a modest gain. Enough to build on bullish technicals.

The Nasdaq gained, but remained pegged by wedge resistance. No surprises here. Friday will be interesting as the expectation will be for a pullback (if the wedge remains true).

Small Caps had the quietest of the day's action, finishing a tiny bit higher. There was little more to read into this with the index just below the March swing high. Modest losses perhaps the most likely outcome tomorrow.

Yesterday's buying was the important action. As long as the indices hold these gains (i.e. stops on a loss of lows), then the rally has a point to defend. Last week's swing lows are the last point of defense for the rally.


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


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