Daily Market Commentary: Light Trading Action

From Fallond Stock Picks
January 4, 2013 - 5:59am

Bulls can be satisfied with yesterday's action. Markets were able to hold their big gains and what selling there was, turned out to be very light.The S&P did see a technical change with an On-Balance-Volume 'sell', and after a recent upswing in buying, it will be important this doesn't morph into a new downward trend.The breakout gap is a big void which traders will try and fill.  True 'Breakout Gaps' never fill, so while a violation of the gap is allowable, it shouldn't be allowed break below Monday's close, and ideally, hold above 3,050.The real winner is still the Russell 2000. A successful back-test of 868 would be very bullish.For Friday, look for more consolidation action. Although the next leg up will probably be a big one as what sideline money is out there is likely anticipating a higher move, particularly for the Russell 2000.---Follow Me on Twitter Dr. Declan Fallon ...

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