Thursday, May 23, 2013

Daily Market Commentary: S&P Bull Trap

Today's losses were small, but enough to leave a 'Bull Trap' in the S&P. It was the only real action of note on the day.  Lower volume kept this from being a distribution day.

The S&P came close to a test of the 20-day MA with a pending bear cross in the MACD and On-Balance-Volume. There was also a relative shift against the Russell 2000, which is better news for bulls as defense of Small Caps outweighed that of Large Caps.

The Nasdaq opened just above its 20-day MA, but spent the rest of the day advancing.  MACD trigger 'sell'  probable tomorrow.

The Russell 2000 defended rising support, and was able to close a little higher.

Tomorrow may see a little more aggression from bulls in the morning, but it will be tough to see significant inroads into yesterday's losses.


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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