Daily Market Commentary: Bulls Keep Things Ticking Over
No great surprises or shocks from Friday, a late surge in the S&P gave the end result to bulls, but losses elsewhere were very minor. Another day which keeps the bullish picture intact: very little on offer for bears.
In the case of the S&P the strong finish on the day came with higher volume accumulation. There was a brief recovery in relative strength (vs Russell 2000), although it looks like a temporary reprieve.
The Russell 2000 experienced a bearish engulfing pattern at the 50-day MA, although the index looks to be shaping a bullish handle following the reaction bounce off the May low. Prepare for an upside breakout, but intraday penetrations of 1,130 still possible (buying opportunity?).
The Nasdaq is nicely positioned at a resistance level. Friday's loss was on higher volume distribution, although the day looked more bullish than bearish. There may be some come back, perhaps as far as the 20-day MA which is about to 'Golden Cross' with the 50-day MA, but this should be viewed as healthy and a good buying opportunity.
Nasdaq breadth isn't suggesting a major swing low, but a low of substance to last the summer is looking likely.
Tomorrow is a bank holiday in Ireland so there won't be an update, but I don't expect things to change anytime soon.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com.
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In the case of the S&P the strong finish on the day came with higher volume accumulation. There was a brief recovery in relative strength (vs Russell 2000), although it looks like a temporary reprieve.
The Russell 2000 experienced a bearish engulfing pattern at the 50-day MA, although the index looks to be shaping a bullish handle following the reaction bounce off the May low. Prepare for an upside breakout, but intraday penetrations of 1,130 still possible (buying opportunity?).
The Nasdaq is nicely positioned at a resistance level. Friday's loss was on higher volume distribution, although the day looked more bullish than bearish. There may be some come back, perhaps as far as the 20-day MA which is about to 'Golden Cross' with the 50-day MA, but this should be viewed as healthy and a good buying opportunity.
Nasdaq breadth isn't suggesting a major swing low, but a low of substance to last the summer is looking likely.
Tomorrow is a bank holiday in Ireland so there won't be an update, but I don't expect things to change anytime soon.
---
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!
