Daily Market Commentary: Firm Resistance Breaks
Courtesy of Fallond Stock Picks
The only disappointment with today was the general lack of volume but it was key day for bulls. For the S&P there was a comprehensive break of declining resistance from April plus a push above the 200-day MA.
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The Nasdaq had already broken declining resistance two days prior and is currently working its way towards the 50-day MA.
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Small Caps also pushed a channel breakout and is likely to be the first to test its 50-day MA. Note supporting technical breakout in CCI
Russell 2000 Small Cap Index ($RUT): "
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But semiconductors were the firm winner on the day; a 5%+ gain on the day pushed it out of its trading range and above its 50-day MA (bullish for the Nasdaq and Nasdaq 100 to do likewise). April highs are next.
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The Percentage of Nasdaq Stocks Above the 50-day MA moved towards a confirmed bull trend – other breadth indicators are likely to follow suit soon.
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Of these breadth indicators, the Summation Index is smoothly building a market bottom
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In summary, bulls in the ascendancy after what looked to be a strong swing to bears yesterday. Tomorrow’s action should hold the upper part of today’s range to keep the pressure on the bears.