Daily Market Commentary: Bulls Didn't Give Bears a Chance
Bears were unable to follow through on yesterday's selling. The morning gap set the tone, and buyers kept the momentum into the close, regaining (and in some cases, exceeding) yesterday's losses.
The semiconductor index led the charge, breaking to a new high. The earlier bearish 'sell' signals in the CCI and MACD were reversed on today's gain.
Semiconductor gains helped create a 'bear trap' in the Nasdaq as the latter index rallied above converged support. The close at 4,183 marked a new closing high for the 5-year rally. This was also greeted with a 'buy' trigger in On-Balance-Volume.
Small Caps also benefitted with a rally launched off 1,147 support. Technicals are weakening, but price action is still dominant and the three week handle is nicely set up for a move higher - assuming 1,147 remains support going forward (the 20-day MA is also available to help).
The S&P also mounted a rally from its 20-day MA. This also led to a 'buy' trigger in On-Balance-Volume.
It looks like bulls were just toying with bears: after days of defending intraday losses, yesterday buyers took the day off, only to come chasing bargains today. Tech indices are hogging the gains, but tomorrow could be a quiet day as the big two day swing is digested.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com.
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The semiconductor index led the charge, breaking to a new high. The earlier bearish 'sell' signals in the CCI and MACD were reversed on today's gain.
Semiconductor gains helped create a 'bear trap' in the Nasdaq as the latter index rallied above converged support. The close at 4,183 marked a new closing high for the 5-year rally. This was also greeted with a 'buy' trigger in On-Balance-Volume.
Small Caps also benefitted with a rally launched off 1,147 support. Technicals are weakening, but price action is still dominant and the three week handle is nicely set up for a move higher - assuming 1,147 remains support going forward (the 20-day MA is also available to help).
The S&P also mounted a rally from its 20-day MA. This also led to a 'buy' trigger in On-Balance-Volume.
It looks like bulls were just toying with bears: after days of defending intraday losses, yesterday buyers took the day off, only to come chasing bargains today. Tech indices are hogging the gains, but tomorrow could be a quiet day as the big two day swing is digested.
---
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!
