Monday, June 08, 2009

Weekly Stock Charts review from Stockcharts.com Publishers

The rally keeps chugging along and now looks better positioned to move higher than lower - but the initial outlook for Monday is for weakness.

Tomas Leszczynski headed the list of Santoren.com, but most of his front page charts were of stocks. His daily S&P chart shows a second long signal which may define the resistance level to break from the next pullback. I still like the idea of a move back to the low 800s (perhaps high 700s) but exact mirrors of prior bottoms are rare so it may do nothing more than make a modest pullback into the high 800s.


Yong Pan showed a mix bag of signals of Cobrasmarketview; nothing convincing either way.


SPY's on a full stochastic 'sell' at overbought levels; the last one brought 4 days of weakness from 5 subsequent trading days.


Doubts = long confirmation?


Weekly resistance says otherwise:


30-min working off rising channel support; third touch is support confirmation


Richard Crockett of StockTiger shows gold miners on a confirmed Renko 'sell'


Joe has his review of the week.


PnF target of $107 for the SPY?


Clear Value Line Breakout:


Finally, Richard Lehman and his weekend comments:

6/6 -- The short term up channels that began around May 22 in equities are still intact. However, the flattening that has occurred during the last few days (more noticeable on the Naz and QQQQ) suggests that the first mini upward has ended and a flat or downward correction is at hand, though still in a wide upchannel. The only item that appears to have broken a channel is gold, woth GLD and XAU in new downchannels. (The weakness in resources may be why Naz and QQQQ flattened more than the large caps.)

Thus, there is room for more weakness (or at last choppiness) this coming week, even within short term upchannels. The longer term picture will not help us now until we get a peak that will indicate the end of the upleg from March 10th. That could happen at any time.

6/4 -- The bounce back today leaves some indexes (like Naz) as having bounced perfectly within the current short term upchannel, and others (like XLK) as having broken and bounced back in. That means either false breaks (which are actually rare) or breaks that simply haven't fully played out yet. We'll need some clues tomorrow to know what the consensus is...but until then one has to assume that the uptrends have essentially held.

6/3 -- OK, so we came down to the lower channel lines on the short term charts as expected, but then the masked 4 pm marauder came in to usher in a last minute recovery which left a number of question marks in the dust. There were clear ST breaks in the resources, namely GLD & XAU and XLE (though not DXO). But stocks pretty much held in their upchannels, or briefly broke but recovered. So I'd say we do not have clean breaks yet in most of the indexes.

If we do get breaks in the ST upchannels, I'd expect them to be short and sweet -- just enough to widen and flatten the upmove a bit. So, its still probably dicey to play to heavily on the short side.

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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