Daily Market Commentary: Moving Averages Break
Declan Fallon | Aug 19, 2014 06:40PM ET
A further acceleration in the rally took indices past key moving averages and into a space with limited overhead resistance. One of the indices hardest hit by the sell off was the semiconductor index. While it hasn't challenged July highs it did close above the neckline and 50-day MA. Technicals also finished today net bullish.
Gains in the semiconductor index will help push the NASDAQ and Nasdaq 100 to new 52-week highs. Measured moves project the April-July rally on to August swing lows: for the Nasdaq, this sets a target around 4,870 and the Nasdaq 100 it's 4,425.
The Russell 2000 also managed a close above its 50-day MA. It's now in a void of resistance until it gets to 1,210. Technicals are improving, but haven't yet reversed all bearish markers.
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