Saturday, May 30, 2009

Weekly Market Commentary: Long Weekend

It's a long weekend in Dublin but it was short week for the markets. When the daily noise was taken away we have a market working on weekly resistance levels. The Nasdaq closed above 1,759 resistance but hasn't truly cleared it. The negative divergence in the MACD histogram will be harder to shake.


The Nasdaq 100 is caught between levels with support at 1,298 and 1,453. However, by cleanly breaking 2004 lows it gives reason to expect the Nasdaq to push higher.


Market internals are guiding down but the markets themselves are contradicting breadth much like they did from late 2006 into the latter part of 2007.


Unfortunately, the 2007/07 negative divergence eventually came home to roost but will it be two times (un)lucky for the averages? Probably not - but it's reason to be wary not just for the daily outlook, but for the long term weekly view too.

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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