Tuesday, March 17, 2009

Stock Market Commentary: Bigger Gains

Low volume gains did at least reverse the priors days losses but it did not relieve the overbought nature of the market. For the Nasdaq the 50-day MA is fast coming into range - one more higher close could be enough to spark another round of buying. Technical strength also enjoyed a significant improvement (stochastic cross of mid-line with a pending 'buy' for on-balance-volume and 'buy' in +DI/-DI).


The Nasdaq 100 broke through the 50-day MA which should help the Nasdaq do likewise


Large caps enjoyed the same gains but still have work to do - the question is whether there is still enough in the tank for them to break from their malaise in the current run.

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