Daily Market Commentary: Bulls Force Action
From Fallond Stock Picks
January 3, 2013 - 5:38am
A second big day of buying pushed markets well beyond resistance, but leaves markets exposed in the short term. Traders looking for a sustainable rally would ideally like to see some low key action which held close to yesterday's highs. Technicals sharply improved, and any developing weakness from last week was reversed.The S&P pushed the boundaries of its consolidation on a fresh MACD trigger 'buy'. However, larger gains in the Russell 2000 further diverged the relative relationship between Small and Large Caps; but this spreading relationship is net bullish for the market as a whole (because more money is flowing into speculative versus defensive stocks).The Russell 2000 broke clear of the September swing high in very bullish action. The rising trend is nicely aligned with the fastest moving average (20-day MA) above the next fastest (50-day MA) and long term movi...
Continue reading this article »
Share This Article: