Sunday, January 11, 2009

Stock Market Commentary

A more substantial loss on percentage terms but a bit of a mixed bag technically. The tech averages escaped the worst of it as the Nasdaq and Nasdaq 100 finished above their 20-day and 50-day MAs; ascending triangle breakouts have failed but rising support of those triangles have not - so it's not all bearish

Large caps weren't so lucky as 20-day/50-day MAs were breached along with rising support. Technicals weakening but not all in the red. Initial project is for a run to early December lows.

Small caps have held their breakout and in the process of making a support backtest along with a test of the 20-day MA.

Normally small caps lead markets; given the Russell 2000 is successfully holding support assume for now that the breaks of support in the large caps are bear traps.

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