Monday, March 02, 2009

Weekly Stock Charts review from Stockcharts.com Publishers; further weakness to follow?

Not a week for the bottom pickers. What had the Stockcharts to say about it?

Yong Pan has noted a consolidation breakdown and target of 646 for the S&P, but short term signals are mostly neutral.


VIX still looks remarkably complacent (trading mid-range of its band).


Pennant breakdown in the SPY's; target of 65s...


But bounce watch in effect for NYADV.


Maurice has been playing the SDS.

I think SDS will exceed the $99 level early next week and rally up to rising resistance. There I expect a bearish rising wedge will be completed, and ultimately bring about a reversal. So I do think that the S&P 500 will move a bit lower before the bulls attempt another takeover.


The monthly damage (eeek!)


Intersting bullish wedge for the Dow - but would you be a buyer of support if it was tested?


Richard Lehman is waiting for a short term bottom, but sees the long term bottom some way off.

2/28 -- It is clear that the small up move this week represented a slope change in the existing short term down channel rather than a break upward. That new slope (in purple) is shown on most short term charts now. We've come close to the lower line on the changed slope but the bounce is already rolling over again, so the bottom has not likely occurred. But it may not be far. Long term, we may be far from a bottom in both time and price, but short term, I believe we are getting close to a more significant countertrend rally. Watch for touches of the lower short term purple lines and possibly even those long term purples on the one-year charts.

2/26 -- Dow and SPX held at flatter channel lines today, but small caps went over the loine and are rolling down. The RUT even set a new low. The budding rally has lost momentum afetr barely two days. Ironically, it was the financials who had the best move of all. What does THAT say about leadership?

One has to give the downside the nod again as every rally of any kind is being sold into and because the retest of the purple breakouts failed.

2/25 -- Things were choppier today than San Francisco Bay. Sellers are still taking every opportunity to unload. We do have uptrends - at least at the mini level -- though most came back down below the break line at the close. Unfortunately, they do not appear to be ones with big potential. So unless this suddenly accelerates into a steeper, wider upchannel, I expect it will not last very long at all. VIX declined and Gold declined, but they could turn in a heartbeat. All in all, this is rather disappointing to the bullish case.

Dr. Joe gives his week in review:


Bank Index toying with major low from 1994


Dollar index at resistance


Finally, Daily Bailey is still looking for a wave 5 end. Lots of room for Tech to fall to reach this target.


Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website
 
f9229fcfd1b1390be00cfccc86c90349c93a4179bf4227457c