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Daily Market Commentary: Inside Day


It was a day which had more in common with last week’s vacation trading than the start of a new trading week. Indices were little changed on the day, trading in a narrow range on slightly heavier volume.

The chief concern was the semiconductor index. It dropped further away from a down-turning 20-day MA, finishing on 390 support. Bulls won’t want it to lose much more with the 50-day MA at 383, the last line of defense for bulls.

The worry for the Nasdaq and Nasdaq 100 is while they are holding 20-day MA support, the influencing semiconductor index is pulling further away from its own. Both tech averages are operating on a ‘sell’ trigger in their MACDs, but other technicals are holding the bullish line.

Those looking for a long trade can focus on the Dow which is holding rising trendline support having bounced off its 50-day MA.

Markets are still vulnerable, although I have taken a long position in the XLU from today’s open.  I suspect there is still enough juice in the tank to see another leg higher.

Source: Folland Stock Picks

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