Daily Market Commentary: Divergence

From Fallond Stock Picks
January 15, 2013 - 4:45pm

A very mixed day for the markets.  Bulls saw the best of the action in market leading Small Caps.  This just reinforced the relative gain between Small Caps and Technology indices.The S&P finished in the middle.  It was able to recover early losses and is nicely primed to push higher. On-Balance-Volume has effectively flat-lined, so the 'sell' trigger is less of a concern than it might otherwise be.  The 20-day MA is handy place for stops if going long (as is today's low for the more aggressive).The Nasdaq suffered enough of a loss to leave behind a 'bull trap'. It also added with a 'sell' trigger in On-Balance-Volume (which is trending down => bearish), not to mention a relative shift towards more bearish Large Cap stocks. It's not looking so good for bulls, although there was a key 'Golden Cross' between 50-day and 200-day MAs.Bulls have primed the market for...


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