Fallondpicks.com: Weekend commentary
Technically, there was a fresh 'buy' trigger in the Russell 2000 and new highs in on-balance-volume for the Dow and S&P.
Market internals [$NASI, $NAA50 and $BPCOMPQ] were interesting because of their mixed messages; the $BPCOMPQ pushed beyond resistance of 48, reversing a 'sell' trigger in its Ultimate Oscillator - but not a similar trigger in its MACD. The $NAA50 looked ready to blast past 1,250 resistance, but again it has found trouble at this important resistance level - technically, it too remains weak. The $NASI regained the 5-day EMA and its Ultimate Oscillator found support at its Jun-Oct bullish divergence, but its MACD is on a 'sell' trigger which looks to be increasing in bearish strength. Finally, volatility is only a few ticks away from support at 16 (major support at 14). The volatility cat-in-the-bag was released in May and I suspect the period of low volatility which had been running from early 2003 is close to over.
For followers of the Ticker Sense Blogger Sentiment Poll, I remain bearish over the next 30-days.
fallond