Declan Fallon | TalkMarkets | Page 56
Market Commentary
Declan Fallon runs a market commentary blog at Markets.fallondpicks.com, and is a contributor to TalkMarkets and Seeking Alpha. He previously contributed to the Motley Fool. Declan Fallon is also a UI/UX Dashboard Designer for First ...more

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Markets Consolidate
After two days of gains it was time for consolidation in markets. The Russell 2000 didn't get this memo and added a third day of gains managing a new closing high.
Bulls Have Breathing Room
The second day of gains has severely stressed any shorts left in the market. Volume rose in confirmed accumulation as buyers pushed markets well away from nearest support.
Breakouts All Around: Nasdaq, Russell 2000 And S&P
The French election result was greeted as a welcome trigger for breakouts. All indices benefited from the action. Best of the action was in the Russell 2000.
Nasdaq Technicals Net Bullish As Breakout Readies
Things are looking good for the Nasdaq as technicals return net bullish after a brief period of bearishness. The index is nicely placed for a breakout on Monday, especially given the relative outperformance of the Nasdaq against its peers.
Markets Rally, But Still Work To Do
A positive response to Friday's selling helped erase those losses, but for many indices it wasn't enough to recover support or reverse technical 'sell' triggers. The S&P is on the verge of a 'death cross' between 20-day and 50-day MAs.
Markets Net Bearish Technically
It's been a while since markets were net bearish, but the S&P, Nasdaq, Nasdaq 100, Dow Jones Industrials and Russell 2000 are now net bearish in technical strength. Adding to this is a number of these indices have also broken from support channels.
S&P Drops Below 50-day MA
The S&P posted a clear break of the 50-day MA on modest volume and will next be heading to test support of the declining channel - which at the moment looks more like a 'bull flag'.
Russell 2000 At 50-Day MA As Indices Mount Morning Recovery
It was a good day for indices as early weakness gave way to sustained buying into the close. There was early morning weakness to set the tone but it didn't last. The one index to rebuff this was the Russell 2000.
Buyers Tried To Revive Russell 2000
The S&P posted a third successive doji with the 50-day MA holding as support. Volume has steadily dropped, which runs the risk of seeing prices head lower in the absence of buyers (not necessarily active selling).
Quiet Friday
Very little to say about Friday's action; tight intraday spread on low volume was not going to send the world alight. The only index to post a modest gain was the Semiconductor Index.
Markets Take Late Hit
The sell-off was attributed to an indecisive Federal Reserve, but profit taking can occur at any time when an extended series of small gains is undone by one big day of selling. Volume rose in confirmed distribution.
Readying For The Breakout
Today's action was more subtle with indices regaining some of the Monday's lost ground, yet not enough to challenge prior highs.
Small Caps Suffer Profit Taking
It was inevitable after a series of gains that sellers were going to make an appearance and today was the day that happened. The Russell 2000 took the brunt of the selling as it shed over 1% on a reversal off resistance.
Markets Treading Water
Friday was a non-event for indices as resistance remained a factor. The intraday range was tight as volume rose in suggested churning. The S&P remained at resistance as relative performance deteriorated from the negative switch earlier in the week.
Small Caps Advance
The last few days have seen small gains with no down days, but some markets haven't yet clawed back the big down day from last Tuesday. When selling emerges it will be interesting to see if these small gains can hold.
Rally Slows But Not Dead
The Swing Low continues to play out with small gains in lead markets. There is still resistance in play, but this supply is been consumed by the day. Trading volume was light too.
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