Wednesday, January 14, 2009

Stock Market Commentary: Losses acclerate

The general consensus for a short term bounce took a hit as a vulnerable market got knocked with another swathe of selling. In the case of the Nasdaq the selling still couldn't bring the index to oversold levels:


The Dow broke support of the MACD bullish divergence and added a second distribution day for the year. The Dow has seen six down days in a row and is flirting with early December lows.


The semiconductor index also took a hit as it lost the last vestiges of short term support.


Any bounce here will only define the upper boundary of a downward channel retest of November lows.

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