
The Dow had a more clear-cut bullish engulfing pattern, well above its 20-day MA, but in the absence of oversold stochastics can be considered a weak signal.

The Russell 2000 rallied back into the lower regions of its 615-625 scrappy congestion. Much work to do but at least the 20-day MA was regained - but it gets much harder for bulls here.

The semiconductor index went one step further and found support at its 50-day MA and was able to finish above its 20-day MA, but this index has long since broken from its summer rally.

Breadth is also very negative with sharp turns of weakness for the Percentage of Nasdaq Stocks above the 50-day MA and Nasdaq Summation Index; note the extent of the negative divergences between breadth and the parent index.


False hope for bulls - or more of the same? Bears will win out eventually, but now has their time arrived now?
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.