Wednesday, September 23, 2009

Stock Market Commentary: Fed Scare

The Fed spooked the market and one can probably expect more of the same tomorrow. The Nasdaq registered a distribution day on a bearish engulfing pattern.

The Nasdaq 100 did likewise as an attempt to break channel resistance failed. Looks ready for a move back to the main moving averages

The semiconductor index finished with a bearish shooting star. How will its resistance breakout fare?

Sentiment indicators had all recovered to break 4-5 month bearish divergences but the Percentage of Nasdaq Stocks above the 50-day MA switched to a 'sell' with a bearish cross of 5-day EMA.

No significant damage but another down day looks inevitable.

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.