Monday, June 08, 2009

Stock Market Commentary: Spinning Tops

A late day rally reversed the bulk of Monday's losses which turned what was a looking a decent day for bears into something more neutral. The Nasdaq and Nasdaq 100 maintained their healthy form staying well above their respective 20-day, 50-day and 200-day MAs. The Nasdaq enjoyed a "Golden Cross" between its 50-day and 200-day MAs; a long term bullish signal. This followed a similar cross for the Nasdaq 100 at the end of May.


The semiconductor index also has a "Golden Cross" working in its favour but has a 'Bull Trap' and a bearish divergence in its MACD trigger line pressuring the bulls.


In terms of market breadth there was a mixed signal from the Percentage of Nasdaq stocks above their 50-day MA. On the bull front was a MACD trigger 'buy' above the bullish zero line but a bearish divergence between the breadth indicator and the Nasdaq itself.


So - will tomorrow break the impasse?

Want to win the Trader's Business Plan prize?

[1] Register at Zignals.
[2] Go to Charts and select a stock (you will be prompted to download Microsoft Silverlight)
[3] Click on the YourCall Icon


[4] Enter a Call by giving a stop and target price; make sure the Time Period is set to Short (month)
[5] Enter as many calls as you like up until the end of June; these can be long or short signals
[6] Send me your Zignals Userid so I can track the calls made (declan-at-zignals.com) or post it in the comments section of this post. In your email make reference to the competition.
[7] The Zignals member with the stock giving the highest return from either a target hit or expiration after 22 trading days will win the prize. Only stocks or FX prices listed on Zignals qualify for entry (no pink sheet stocks). The announcement of the prize winner will be made at the end of July.

Good luck!


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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