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, the free stock alerts, market alerts and stock charts website