Daily Market Commentary: Roll Friday into Tuesday - Little to add for today

Out of today's action - the Dow might give shorts something to work with on Tuesday. The Veteran's day holiday was unlikely to generate a follow through day from Friday, but did well not to give back gains, which often happens in the absence of active buyers - irrespective of selling action. This makes any short position a considerable risk, but at least at today's close the risk of such short plays is low.

The Nasdaq is still holding the 'bull trap', but is also above its 20-day MA. It has weaker short potential than the Dow, but not void of potential.

The Russell 2000 is just below minor channel resistance and its 20-day MA. However, the reward potential is the lowest of the indices.

Today's action does suggest bulls have control of the market, but shorts may be able to sneak a trade from under the nose of bulls, with the opportunity available at today's close.

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