Monday, April 20, 2009

Weekly Stock Charts review from Stockcharts.com Publishers

After a week's break the weekly review is back. Markets barely took a break of their own as the rally since March reached new highs. When will resistance kick in?

Yong Pan of Cobrasmarketview has a mix of mostly neutral, bear and a couple of bull signals in the short term; still in the balance but it would be hard to be a buyer at these levels.


Although breadth is overbought the VIX is still in neutral territory.


Clean looking bearish wedge on the SPY.


But dailies will always be influenced by a solid bullish weekly picture


Tomas Leszczynski of Santoren.com has a downside target on the SPY 60-min c765 and rising.


First bottom bounce in place - odds of a retest looks high


Minimal accumulation on the SPY 10-min


Richard Lehman as current ascents at channel mid-points with no loss of support.

4/18 -- The short term trend channels continue as persistently as any I've seen in a long time. Everyone seems to know the market is overbought, but the need by money managers and institutions to get cash back into equities as they rise overpowers the sanity of paying up for stocks that are having a really lousy year. That is exactly what makes markets trend from one extreme to the other. The one-year channel lines slowed the angle of the short term rise, but hasn't stopped it. The RUT is now hitting its one-year line, but the SPX has already pushed up through. The three year lines will likely be much greater resistance as they contain a much larger portion of the decline (normally, the one-year and three-year lines would almost be the same), but the big question on everyone's mind is whether we get a short term pullback of consequence before we rise up to that level. The vulnerability to a short term sell-off just keeps increasing as the indexes hug the upper short term lines.

VIX has pushed down through the lower channel line, steepening its descent, as has gold. Both are concurrent with a strong equities march to the upside. A small premium in May VIX futures, however, says some kind of respite is pending for equities.

4/16 -pm- Another late day move keeps everything truckin in the existing short term upchannels. The chart on the SPX is almost at the upper line again, and it actually looks like it may be reaccelerating upward after changing to a flatter slope at the end of March. If it breaks the upper line, that will definitely be the case. If you are simply riding this upwave, you've got to love this one. Long term, the RUT is now at its one-year downtrend line, but the Dow and SPX are already starting to move up through it.

Joe has his usual nice sum up on the week.


ValueLine heavily overbought (no surprise there)


Ted Burge at Thetedlines.com opened with this simple line

Friday April 17th, the close was at resistance. Not an opinion! Just the facts! Price is KING!


Certainly it looks hard to see markets making it another week higher in the face of a busy earnings week. Personally, I have made three attempts at a top call with my spreadtrading account, third time lucky?

Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.
 
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