Daily Market Commentary: Tension Keeps Building

The market looks like it wants to go higher, but nobody wants to be first through the doors. Modest gains covered the decent intraday recovery: whatever about end-of-day gains, intraday action is firmly with bulls.

The S&P reversed its On-Balance-Volume 'sell' and is about to do the same to the MACD signal. Be ready for upside on Monday.

The Nasdaq is similarly well positioned, again working convergence of support from channel support and former channel resistance-turned-support. Again, be ready for a MACD trigger 'buy'.

The Russell 2000 posted the biggest end-of-day gain. Watch for upside leads on Monday and a new MACD trigger 'buy'.

The semiconductor index is a swing trade opportunity. The inside day sets up a move on a break of Friday's high/low with a stop on the flipside.

Monday is set up for the upside follow through, which I had thought was going to happen Friday (Thursday?), but never did. The risk:reward is set for the longside, but let the market lead you.


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