Daily Market Commentary: Low Key Action

Little to say about the last two day's of action. Volume action was light, but with the exception of the Dow Jones Index, indices continued to toy with highs. The only real indication of change was a continued shift in relative strength from the S&P to the Russell 2000.


However, the Nasdaq was losing ground against the S&P, but with the Nasdaq breakout intact it will play out as a slow turn.


The Percentage of Nasdaq Stocks above the 50-day MA is showing more as a swing high (in the Nasdaq), but other breadth indicators aren't showing such a top.


The Russell 2000 is at highs, like the Nasdaq, but remains inside its rising channel.


It's a boring market: hard to get excited with penny-style gains (which eventually add up!), but sharp moves downside are quickly bid up before they have a chance to build momentum.

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