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 Zignals.com.
You can read what others are saying about Zignals on Investimonials.com.

JOIN ZIGNALS TODAY - IT'S FREE!