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Daily Market Commentary: Nasdaq Breadth Strengthens

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Very little change in the markets, but there was a net bullish turn in technicals for Nasdaq breadth metrics. The Nasdaq Summation Index is in a clear advance and is on course to reach an overbought state. This breadth metric is a good confirmation signal for swings in the parent index, and it's suggesting more upside.  For the Nasdaq Summation Index to reach an overbought state, it would take another couple weeks of gains in the Nasdaq.

Daily Market Commentary: Narrow Losses.

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After Monday's gains it wasn't such a surprise to see small losses today. It didn't change a whole lot and buyers can probably find some value for the next up swing. Certainly bears didn't get much out of today, despite the losses. Volume was down, another indication of the lack of interest from sellers (and buyers to a lesser extent). The S&P remains primed below resistance. Aggressive traders can use today's lows for stops - although a rapid intraday spike low may trap bears. The S&P still looks like it's playing for a higher push.

Daily Market Commentary: Small Caps Breakout

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It was looking good for all indices in morning trading, but bears were able to knock back the S&P back inside its base by the close of business. However, the Russell 2000 was able to post a breakout, even if it hasn't gone all the way to new all-time highs, it has made inroads into challenging the 'bull trap'. The S&P will have another chance tomorrow. Today's weak finish was unable to undercut Friday's close, which will provide a platform for another push higher. The worry will be an undercut of the low on a gap down; it could panic rally participants into offloading in profit taking. The 50-day MA is the support zone.

Daily Market Commentary: S&P Tussle at Resistance

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The S&P is experiencing an interesting tussle at resistance, with 1,850 proving to be a difficult level to break. Volume climbed to register yet another distribution day, but Friday's intraday spread was narrow - offering a swing trade opportunity on break of day's high/lows. The tightening push against resistance would suggest bulls have it, but a gap down on Monday would likely see a rapid move to the 50-day MA. The loss in the Nasdaq was minor enough: Friday finished just below Thursday's close, holding the breakout. There was a climb in volume, marking it as a distribution day, but the point loss wasn't enough to make this a worry. Bulls may need to worry about a 'bull trap' - but there is lots of support to work with.

Daily Market Commentary: Quick Update

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Bears found no joy after the first real day of selling for February failed to lead to anything. The Nasdaq maintained its breakout, and even managed to register an accumulation day: bulls can probably play for further upside with a stop below 4,225.

Daily Market Commentary: Failed Challenge on Resistance

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No surprise to see the S&P stall out as it challenged prior highs around 1,850. What's important is how the S&P behaves as sellers take a run at it. First support level is the 50-day MA, then 1,810, then the 20-day MA. Shorts may be able to squeeze something out of this on the way down, stops on a close above 1,850, but probably not one to hold on to for too long.

Daily Market Commentary: Small Caps Take The Limelight

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The shortened week started where it left off, with gains all round. However, it was left to Small Caps to enjoy the best of today's action. The challenge for the index will be taking out the 'bull trap' with resistance likely to be tested tomorrow. It may even offer a short play with a stop on a break of the 'bull trap' neckline.

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