Thursday, April 30, 2009

Stock Market Commentary: Black Candlesticks Spell Trouble

The Nasdaq tagged its 200-day MA after the morning gap faded into the close. The higher volume reflects churning as profit takers hand over to weak holders.

The Nasdaq 100 also flashed a black candlestick but held above its 200-day MA - but it is questionable how long it can continue to hold this moving average. Large and Small Caps were relatively uneventful.

Ironically, the semiconductor index pushed through its 200-day MA without the signs of weakness developing in the Nasdaq and Nasdaq 100.

Typically the SOX leads but in this instance I think it will succumb to the developing downwind in the Nasdaq and Nasdaq 100.

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