Thursday, December 11, 2008

Markets Behaving Well

With the indices spending another day near joint resistance of declining channel lines and 50-day MAs, each are nicely set to push higher, although momentum oscillators favour a retreat. The Nasdaq looks best positioned to move higher as it spent a third day above 1,534 near term support.


Transports behaving well with the slump in oil prices. With stochastics overbought it will be important for the next downleg to make a new higher low:


Same goes for the S&P; the mini-pennant for the past 3-days is likely to breakdown given overbought stochastics and the presence of its 50-day MA overhead.


There is more to like here about the markets and I suspect the real value buyers will take advantage of the next downleg, thereby helping in creating the higher low.



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