Daily Market Commentary: Holiday Pop
For a shortened day, Friday was a good finish to the week. Indices closed strong, even if volume was never going to be a key decider. The S&P made it above its 50-day MA and is approaching former channel support turned resistance.
The Nasdaq has put itself on the bullish side of the fence with the June bull trap the next challenge. Lots of support for bulls to use for risk management.
The Russell 2000 cracked resistance to close at a new high. Relative strength picked up steam against the Nasdaq and S&P: it remains the index of choice for longs. Although new longs are best to wait for a pullback to the 20-day MA (but then a 'bull tap' becomes a problem if this happens too soon).
On the weekly chart, the Russell 2000 continues to honor the broad bullish channel.
Nasdaq Breadth metrics turned upwards, although the Percentage of Nasdaq Stock above the 50-day MA and 200-day MA is again getting close to overbought territory; the latter metric is already there.
The indices are pushing another overbought leg - which keeps the broader rally running, but doesn't offer sideline money a low risk opportunity to enter. Hold until proven otherwise...
All Contributions Welcome - Thank You!
Follow Me on Twitter
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.
JOIN ZIGNALS TODAY - IT'S FREE!
The Nasdaq has put itself on the bullish side of the fence with the June bull trap the next challenge. Lots of support for bulls to use for risk management.
The Russell 2000 cracked resistance to close at a new high. Relative strength picked up steam against the Nasdaq and S&P: it remains the index of choice for longs. Although new longs are best to wait for a pullback to the 20-day MA (but then a 'bull tap' becomes a problem if this happens too soon).
On the weekly chart, the Russell 2000 continues to honor the broad bullish channel.
Nasdaq Breadth metrics turned upwards, although the Percentage of Nasdaq Stock above the 50-day MA and 200-day MA is again getting close to overbought territory; the latter metric is already there.
The indices are pushing another overbought leg - which keeps the broader rally running, but doesn't offer sideline money a low risk opportunity to enter. Hold until proven otherwise...
All Contributions Welcome - Thank You!
Follow Me on Twitter
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.
JOIN ZIGNALS TODAY - IT'S FREE!
