Sunday, September 03, 2006 Weekly review

The week past should mark the end of the holiday trading. To get the ball rolling, Mitchell Meana led with an interesting 10-minute QQQQ chart for short term traders - a good time to buy?

His Russell 2000 iShares (IWM) chart shows a breakout from the rising wedge. Strong bull markets are led from the front by small cap stocks, so it will be important for this small (but significant) breakout to build over the coming weeks.

Ted Burge broke down the chart down to the 60-minute time frame:

with these comments as a footnote:

Sep 1st! Intra day support at 71.61 to protect profits.
Aug 31st! We have let price talk to us for a week. We have a new PnF buy signal, the trend is up. Support of the 20 and 50 MA's and support at 71.05.

Joe Reed, in his modest ways, had an interesting chart for Crude Oil. There appears to be a nice support trade set up:

but Robert New would probably disagree:

Robert New had some interesting things to say on the semiconductor index:

...the SOX which broke down through a 3 year uptrendline some time back backtested that line this week and turned tail today. This 460 area is going to be critical for both the SOX and the markets in the weeks ahead.

and he had this to say on the overall market:

All in all it was yet another strong week for the broad markets but the move higher continues on more or less declining volume and we remain quite overextended. With the rising wedge breakout moves to the upside (which are relatively rare when negative divergences in place) the Dow and SP 500 indices are likely seeing influence from their symmetrical triangle patterns which hold potential upside measurements of 11,650 and 1325 which is near our April highs and should provide a major resistance point. The market in general continues to rotate from group to group. If you study our sector charts starting on Page 8 we continue to see the sectors do best that form bullish divergences under price action. Also, many groups are in very wide and loose bases (i.e. Retail, Steel, etc).

he has a very simple chart highlighting resistance in the NASDAQ:

Stephen Stewart had an interesting chart highlighting rotation in favor of large caps:

Jack Chan has his attention focused on the gold miners. A potential breakout buy is in the works:

Craig Snider was in agreement:

But for those who don't like to short (and are bearish on the market), this chart by Dan Basch is worth checking regularly on. What are the chances of seeing a retest of his wedge resistance line (now support)? A great chance to buy???