Daily Market Commentary: Upside Follow Through

Looks like the Dow didn't get the memo; all indices continued their advance, except for the Dow, which headed south until pulled back in the afternoon.

The Nasdaq pushed forward with higher volume accumulation.  It finished the day at channel resistance, but with the breakout to back the bullish picture.

The Russell 2000 posted the largest end-of-day gain, significantly reducing the risk for a 'bull trap'.  The index is on course for a test of channel resistance, with the possibility of a measured move target of 1,137.

The S&P is only a couple of points away from channel resistance where it's more likely to encounter supply issues (from sellers) relative to the Russell 2000 and Nasdaq.

However, the Nasdaq 100 was able to go one step further and clear channel resistance. This is good news for other indices fast approaching channel resistance of their own.

The semiconductor index returned to the 'right side' of the trend line, confirming the break of 500 (which should be significant support going forward).

No 'sell the news', and bulls firm up breakout support. It might be a long wait before bears can finally muster a shortable trend lower.


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