Sunday, June 14, 2009

Weekend Market Commentary: Ticks Higher

The weekly picture for the indices continued to drive in favour of the bulls. Long term stochastics [39,1] are approaching areas which have proved to be resistance in the past but are nowhere near overbought.

Since the March bottom the S&P has enjoyed four accumulation weeks to one distribution week - although volume has dropped considerably from latter 2008 and early 2009.


The Nasdaq has seen five accumulation weeks to no distribution week. Long term stochcastics have only just pushed above the mid-line.


The Nasdaq 100 was the most interesting as it had held above last week's break of 2006 low resistance. Former bearish head-and-shoulder support (currently resistance) from 2007/08 is next on the target list. It has seen more distribution weeks but carries the strongest price action.


Breadth indicators haven't given a clear 'sell' signal but are (negatively) diverging to the parent indices.

No real inclination of a top, even if overbought.

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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