Daily Market Commentary: Bulls Chug Along

The advance in the S&P looks like it has the legs to make it to the upper envelope band, which marks a 10% gain on the 200-day MA, and a good place to sell covered calls.  Even if sellers were to make an appearance it would require large chunks of change to disappear in the space of a couple of days to shake what are stubborn shareholders out of their positions.

The Nasdaq also looks like it will reach a point of challenging 'Head' resistance. Solid action with higher volume accumulation.

The Russell 2000 has jumped through a number of resistance levels since rallying off the May swing low. It currently rests against resistance defined by March and April swing highs. It's a possible shorting opportunity with a flighty stop.

The Semiconductor index flashed another doji. Look for a Tri-Star reversal.

Tomorrow may close weaker, but even if bears finally get a turn at the market they are unlikely to shake current holders out of their shares.


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