Daily Market Commentary: Bulls Lead Advance

While the buying volume was not spectacular, there was enough action from bulls to see the basis of a rally build. For the S&P this meant a net bullish turn in technicals.

The Nasdaq was able to register higher volume accumulation, although the lack of gains off the open does point to some indecision which bears might cling on to, but it's not much.

The Russell 2000 enjoyed a better day and almost registered a 1% gain.  There was a marked relative improvement for this speculative index, which is important for the health of the rally going forward. It still has work to do, but this was the best of the days action.

The other index of note was the semiconductor index. It added almost 2% and handily cleared converged resistance of former channel support and the 480 level.

Today offered some downside protection; weakness will become a buying opportunity unless 'bull traps' are created. But bulls have the edge.


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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com.
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