Thursday, March 12, 2009

Market Sentiment: Bottom?

The Nasdaq may be overbought in the short term but on the intermediate time frame things a looking a lot better. It's not all roses, I would like to see the Summation Index weaken a little more to firm up a sentiment bottom but the Bullish Percents made a picture perfect touch off the bullish divergence and there were bullish 'buy' triggers in it and the Percentage of Stocks above 50 and 200-day MAs.

The S&P is a little closer to a Summation Bottom but did enjoy a bounce off the bullish divergences in the S&P bullish percents. It's possible the S&P will find a bottom before the Nasdaq does.

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