Daily Market Commentary: Good Day For Bulls
Today's buying offset the prior two days of indecision in the markets. The Nasdaq had perhaps the best of the action, rallying past the 20-day MA in a move towards 4,485. Technicals are on the verge of a net bullish switch with an upcoming MACD trigger and On-Balance-Volume 'buy'.
The S&P will soon be up against its 20-day MA, which 'Death Crossed' with its 50-day MA. If there is going to be a retest of the developing swing low then this is the index likely to do so first.
The Russell 2000 won't be too far behind. Unlike the S&P it already has a MACD trigger 'buy', but it hasn't yet closed above its 200-day MA.
Markets are well positioned for further gains. A push lower will look more like a bullish retest than a resumption of the July down trend. It would take a significant news event to undo this, and even a break of the swing low would push market breadth into buy territory. Build long positions on weakness, but don't over commit with an all-in style shove: eat in nibbles and embrace days which offer >1% loss.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com.
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The S&P will soon be up against its 20-day MA, which 'Death Crossed' with its 50-day MA. If there is going to be a retest of the developing swing low then this is the index likely to do so first.
The Russell 2000 won't be too far behind. Unlike the S&P it already has a MACD trigger 'buy', but it hasn't yet closed above its 200-day MA.
Markets are well positioned for further gains. A push lower will look more like a bullish retest than a resumption of the July down trend. It would take a significant news event to undo this, and even a break of the swing low would push market breadth into buy territory. Build long positions on weakness, but don't over commit with an all-in style shove: eat in nibbles and embrace days which offer >1% loss.
---
Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.
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!
