Calm before the storm? It was a relatively quiet week for markets.  Daily charts tested key support levels of 200-day and 50-day MAs, while the point shift in these markets was relatively minor.  Weekly market breadth was also relatively unaffected. The Percentage of Nasdaq Stocks above the 50-day MA had one of the smallest changes for 2012. It's also in neutral territory, but rising, in line with a seasonal 'Santa Rally' The Nasdaq is caught in a bit of trading range, with 3,100-3,196 likely to play as supply in the latter part of December. The light breadth action reflecting this indecision. Small Caps remain the index of choice. The 'bear trap' is playing nicely for bulls.  A break above 868 would be very positive for the index, and it could be a big performer in 2013. The S&P is also coming off a 'bear trap', but it looks like there is a bit more potential in Small Caps to maximize its benefit. However, the S&P should see 1,474 b

Tesoro Petroleum, Krispy Kreme Doughnuts and Randgold Resources all had solid 2012's from when I first featured them.  You can read more about what to look forward to for 2013 here . 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 stock screener with

There wasn't a whole lot of movement in the market, but what movement there was - was higher.  Volume also came in lighter. Markets are still nicely poised for another leg higher, and the tight action of recent days allow for a reasonably tight stop. The Russell 2000 is still the best positioned index to gain.  It remains tied to its 50-day MA, with a very tight bullish flag.  Technicals all bullish. The Nasdaq staged a recovery to its 200-day MA.  The falling 50-day MA is nearby to add selling pressure, and the dreaded "Death Cross" looms on the horizon. The S&P is about to test the strength of supply at its 50-day MA.  Given the action in the Russell 2000, there is a good chance the S&P will be able to push through. Tomorrow should see bulls continue their run of form.  The Russell 2000 remains the index of choice for buyers as it leads relatively. --- Follow Me on Twitter Dr. Declan Fallon is the Senior Market Technician and Community

It was a day of contrasts. Large Cap indices got the best of the action, closing up (slightly) on higher volume accumulation.  Tech Averages did not fare so well, the Nasdaq 100 suffering worst on the day. The S&P experienced a wide range day, stopping at its 50-day MA. Technicals clung to its bullish particulars. But the Nasdaq was rebuffed by its 200-day MA. with the 50-day MA overhead as resistance. The Nasdaq 100 was particularly hard hit, leaving behind a bull trap. While the Russell 2000 escaped relative unscathed. Bulls should still look to the Russell 2000, which continues to exhibit good bullish form, despite today's losses. Technology had a bad day, which threw a spanner in the works for those looking for support at 200-day MA. The 20-day MA is next. --- 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

Tough to know what to make of today.  On a relative scale, losses were light, but volume was higher - marking confirmed distribution. The broader 'Santa Rally' remains in good health, and the two days of losses are part of a rebuff from 50-day MAs. Technicals also remain positive. The S&P is caught between its 50-day and 200-day MA, and losses are on course to shape a swing low at either the 20-day or 200-day MA. How the 200-day MA can play as support will first be determined by the Nasdaq.  It finished the day at 200-day MA, so if buyers are going to view it as support, then they will need to step in soon - if not tomorrow. But the index best placed to gain, and the index which performed best today, is the Russell 2000.  The index is holding the 50-day MA support and outperforming both the Nasdaq and S&P.  Technicals are also getting stronger. Purveyors of the Santa Rally will want to keep an eye on the Russell 2000, it still looks like it will be the

It was going to happen at some point, but sellers made an appearance after a strong upward swing from the November swing low. Resistance played out at the 50-day MA, but selling volume was below average, and below Friday's higher volume accumulation.  Technicals also turned net bullish by the close of business. It was a similar story for the Nasdaq. Technicals also turned net bullish. Helping out the Nasdaq was the net bullish turn in the Percentage of Nasdaq Stocks trading above the 50-day MA.  This breadth index is usually the first to turn bullish, but the rally for November is substantial, increasing the probability for a decent Santa Rally. The Russell 2000 also experienced net bullish technicals. Like the S&P and Nasdaq, it encountered resistance at its 50-day MA; but this resistance also corresponded to horizontal resistance.  As a result, there may be more selling pressure for this index than for the aforementioned indices. I'm still liking a

The swing low in the market firmed up with a strong advance off an oversold breadth state. In the case of the Nasdaq, breadth moved from oversold into a neutral state, but continued the advance higher. Breadth has plenty of room to run before it turns overbought. However, the Santa Rally may not last long into the New Year, as the NYSE 52-week low is well away from a typical strong swing low. The index to watch over the course of the Santa Rally is the Russell 2000.  The recent breakdown reversed into a 'bear trap', and is ready to challenge 868 resistance for a third time (lucky!).  Small Caps have had a quiet 2012, so 2013 could be their year. The S&P also is working off a bear trap, and is in the process of completing a higher swing low - and perhaps - a new, higher swing high. While the Nasdaq is range bound, but a move to challenge 3,196 should be supported, given the relative position of breadth metrics. The Fiscal Cliff is a distraction, S