Daily Market Commentary: Gains Hold

In positive action, markets were able to hold on to the gains from yesterday and in some cases add to them. The S&P enjoyed a day of confirmed accumulation, pushing the indices away from 20-day and 50-day MAs and keeping them on a path to channel resistance. The S&P is running a rally similar to the one experienced in June, and so far there is little reason to suggest it can't emulate its gains.

The Nasdaq started the day in the gap created by yesterday, but it was able to finish the day just a few points shy of yesterday's close.  While a down day, volume was lighter than for the S&P.

Similarly, the Russell 2000 sported a minor loss, but more importantly retained the breakout generated over the past couple of days.

The Dow recorded the best of the action, clearing the 50-day MA on lighter volume.

Bulls can be very satisfied with Wednesday's action.  Weakness remains a buying opportunity until 'bull traps' emerge (if at all).

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