Daily Market Commentary:Bull Kept Waiting

Bulls made another stab at a recovery on Friday, but volume was lighter than previous selling  The breakouts in Large Caps haven't materialized, but haven't been ruled out either.  While Small Caps remain in trouble despite the recovery.

The Russell 2000 opened at support and made it back to Thursday's open, but it remains below the 200-day MA with the 20-day MA fast approaching from above.

The Nasdaq finished with a bullish engulfing pattern, but the larger picture points more to a trading range.

The semiconductor index is neutral, trading a series of tight narrow days; swing traders will do well when this trading range breaks.  Note the proximity of channel resistance, this may force hands to act as prices approach this line.

While, the Nasdaq Breadth hasn't yet made it to an oversold state typically associated with strong swing lows.

The S&P has been dogged in its defense of 20-day and 50-day MAs.  If this fails, then look to the bottom to quickly fall out of the Russell 2000.

The Dow Jones Industrial Average is right against resistance. If this index is going to break higher, Monday should be the day - it really can't go any higher without breaking!

The picture hasn't changed from last week: bulls have the S&P and Dow to look too, bears have the Russell 2000.


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