Tuesday, January 13, 2009

Intermediate Top

With yesterday's loss of 20-day/50-day MAs and rising support from November lows, combined with the bearish crosses in Breadth indicators at intermediate top resistance it looks like the Santa Rally is done. What's important is how the indices react on the move closer to November lows. The Nasdaq did look like it was going to break out of its bear market pattern with respect to breadth resistance, but it looks like the goal posts have made minor changes.


The S&P conformed more to traditional bear market breadth resistance, but is effectively matching the topping pattern in the Nasdaq.


Confirmation of the top will require a test of the 20-day/50-day MAs and/or a test of former support-current rising resistance as anchored by November lows.

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