Monday, January 29, 2007

Weekend Commentary

Newsletter, Members Click Here. To Subscribe - click Bull icon.Last week covered all the bases as Friday turned in a low volume, flat day. The week as a whole failed to say anything about how the November-January sideways channels will break in the NASDAQ, NASDAQ 100 and Russell 2000.






Large caps [Dow, and S&P] kept their rallies intact, but these indices can't be expected to keep the overall market bubbling along at a solid rate.




The semiconductor index managed a close above its 200-day MA, placing it well inside its prior bull channel after an earlier break of support. The Russell 2000 closed on a bullish piercing pattern - but the pattern is weak given it occurred when intermediate term [39,1] and short term [14,3] stochastics are in neutral territory.

Tech market internals [$NASI, $NAA50 and $BPCOMPQ] also changed little on the week, although there is a pending 'buy' signal in the MACD of the $BPCOMPQ as it parent indicator whipsaws around its 5-day MA - directionless. The $NAA50 remained contained inside its consolidation, but lies closer to support than resistance.





Lots of hullaballoo for the week, but the sideways patterns in play for the markets continues. I am still favoring a downward break from such patterns and so hold to my bearish outlook for the Ticker Sense Blogger Sentiment Poll.


 
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