Friday, November 14, 2008

Trading Ranges Established

Looks like yesterday's rally threw markets into more prolonged sideways trading ranges, rather than take them another leg down. The boundaries for a breakout remain unchanged from before; just a second band of resistance (a new neckline) was added at November highs to create a double/triple(?) bottom with yesterday's low and the late (and early) October low(s).

It's still anyone's game with the Summation Indices favouring bulls and the Bullish Percents aligning with bears.

You can see in the Dow chart how neckline resistance is the same whether you looked at this as a head-and-shoulder pattern or a triple bottom. Yesterday's momentum should see it challenge 9,615

For the Nasdaq, angled resistance is key:

The S&P is a bit of a hybrid:

Dr. Declan Fallon, Senior Market Technician, the free stock alerts, market alerts and stock charts website