In a quiet day for the markets, all managed to retain the gains booked on Monday. There were some technical improvements, notably the MACD trigger 'buys' for the Nasdaq, Nasdaq 100, Russell 2000 and S&P. Only the Dow Jones was excluded from the MACD love in. The upcoming challenge for these indices are 20-day MAs. The Nasdaq enjoyed an On-Balance-Volume 'buy' trigger to go with the MACD 'buy'. The Russell 2000 got a relative strength boost against the Nasdaq, and managed a gain against the S&P. Better stuff from speculative Small Caps, and suggests there is more to this rally than just a simple bounce. Friday will boil down to action at 20-day MAs, but holiday trading could see these ignored in some Black Friday bargain hunting. Next Monday will give a better reflection as to how this rally is shaping up. Have a great Thanksgiving! --- Follow Me on Twitter Dr. Declan Fallon is the Senior Market Technician and Community Director ...

It was going to be hard for bulls to push another day like yesterday, so a consolidation near yesterday's highs was adequate compensation. The S&P almost scrapped a point gain, but the 20-day MA took another step lower to meet it. Technicals improved, although On-Balance-Volume is experiencing whipsaw. The Nasdaq experienced a similar day to the S&P.  Technicals are also improving; a MACD and On-Balance-Volume 'buy' trigger are likely tomorrow - assuming no major loss. Such a 'buy' would not preclude a retest of the low, but it would suggest a more trade-worthy low is in place (and the retest would be a buying opportunity). The Russell 2000 completed the trifecta index gain, but technically it's not as well placed as the other indices, and is underperforming relative to the Nasdaq and S&P. Tomorrow could see more of the same, with 20-day MAs overhead to provide resistance.  The retest would be welcome as it would help firm up the swi...

My fundamental take on EPAM Systems is available here .  The technical picture shows a fresh breakout on decent volume, for an illiquid stock. Stops can go on a loss of $18.50. The projected target is $25. Follow Me on Twitter Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com . I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements. Zignals offers a full suite of FREE financial services including price and fundamental stock alerts , stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock quote watchlists, multi-currency portfolio manager , active s...

Big gains, but not much volume, opened the week brightly. It's a good start for a swing low, although this will require a decent test over the coming days. The S&P was able to close above it 200-day MA, but technicals didn't manage much improvement.  Can Large Caps lead out? The S&P is showing a relative gain against the Russell 2000, and will soon take out its relative reaction high from July; making it an index leader The Nasdaq enjoyed a more powerful 1-day rally, but it's a long way from even its 20-day MA, let alone the 200-day MA. The 20-day MA will be its next resistance test. The Russell 2000 finished the day with a 'Death Cross'. despite the rally. There was a slight improvement in technicals, but supply can be expected to kick in at its 20-day MA. Tomorrow will probably see some easing, but a swing low test will be need to confirm a market bottom. --- Follow Me on Twitter Dr. Declan Fallon is the Senior Market Technician a...

Despite adding to existing longs  of my investment holdings (my trading account is decimated!), it's still looking a little early for a breadth swing low.  However, I didn't want to get caught on the wrong side of a 'Santa Rally' (should it come), so thought Friday was a good day to add to longs. The Percentage of Nasdaq Stocks has dipped into swing low territory, but it's typically the first breadth indicator to reach a bottom. But the Nasdaq Bullish Percents are still some way off. Technicals are not oversold either. Strong swing lows  come in the sub-30% area, with minor swing lows possible in the current range. The Nasdaq Summation Index is getting close, but technicals are still some way from a bottom. I usually look for swing lows from -800 and lower, but it's conceivable a bottom could develop here. The Nasdaq is trading inside a band of support running between 2,800 and 2,865.  The rising trendline of wedge support is also available on t...

There was simply no hiding today. The Russell 2000 took the brunt of the selling, dropping 2% and finishing near the low of the day.  Other indices were similarly hit, but none to the same extent as Small Caps. Volume rose in a confirmed distribution day. The S&P was notable as it gave up 200-day MA support. The Russell 2000 is just ugly. Support at 765 is next. The Nasdaq is furthest from 200-day MA support. It finished the day with a 'Death Cross' between 20-day and 200-day MAs. While it hasn't done so yet, the semiconductors have struggled, but there hasn't been a break of the October swing low.  Relative strength has been good, but there is much work to do before it can take on a role as recovery-leader. Today's selling will offer some short term floor, but it may still too early to call a swing low.  On the positive front, semiconductors haven't been as weak as other indices, which suggests a Tech recovery is not far off. --- Fol...

Today's close left markets in a position where they look ready to move lower. Today's losses were light, but tomorrow or Thursday could be damaging. The S&P was unable to hold its 200-day MA, after early trading had placed the index above this key moving average. The Nasdaq gapped lower, and its early rally did enough to close the gap, but little more.  The 20-day MA is about to cross below its 200-day MA, when it does, it will play as resistance on any subsequent rally. The Russell 2000 is perhaps the index most vulnerable to further selling. In a decline, speculative stocks are more likely to suffer heavier selling. As this decline intensifies, Small Caps will find themselves at the sharp end of the sell off.  Tomorrow could be a hard day for the index. If you are on the bull side of the fence, you will be looking for a strong opening hour to define the trend for the rest of the day. But bears hold the edge. --- Follow Me on Twitter Dr. Declan F...