Wednesday, October 02, 2013

Daily Market Commentary: Bulls Build Swing Low

Another good day for bulls, where early selling was unable to take out the September low for the S&P or create a 'bull trap' in the Russell 2000. The Russell 2000 is offering the best bullish momentum opportunity - today's pullback a good potential entry.

The S&P was busy defending its 50-day MA. Although volume climbed to register a distribution day, today's action suggests a more bullish defensive action.  Longs can place stops on a loss of 1,674.

The Nasdaq continued to hug the upper channel line, although there was an early On-Balance-Volume 'sell' trigger. Other technicals are okay, so no real concerns yet.

Even the Dow Jones Industrial may be attempting a swing low. Today's hammer is in a bit of a no-mans land, although it has occurred at a point where stochastics [14,3] are oversold.  Trading volume was very light.

As before, it remains a buyers market. With the exception of the Dow Jones Index, selling action has been rebuffed. There is a good chance for further new highs in the Russell 2000, with opportunities for similar highs in the Tech indices (coming off the back of channel breakouts).


All Contributions Welcome - Thank You!
Follow Me on Twitter

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