Thursday, October 08, 2009

Stock Market Commentary: Breakout & Stall

Favourable jobs data took indices out of their downward channels, but the morning gaps didn't generate a great deal of follow through - although volume did climb to register an accumulation day. For the Nasdaq, technicals were relatively unchanged and the day closed with a shooting star (but given stochastics are not overbought it's not a strong bearish candleline).


Small Caps struggled to reclaim former channel support although a new - slower - channel looks to be in play. Note the struggle at the 20-day MA.


The semiconductor index is struggling even more


But even with these struggles bulls are back in the ascension. Can markets make new highs? And will Semiconductors join the fun?


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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