Monday, November 23, 2009

Stock Markert Commentary: Gap and Stall but Large Caps do Better

A strong open failed to re-ignite the old breakouts for Tech markets and volume wasn't exactly jumping off the scale. Large Caps closed at new highs and even managed to register a minor accumulation day.

Of the two tech indices, the Nasdaq 100 did better with a push above breakout support from last week - but the bearish divergence in the MACD has contained the rally. Volume was lacking and the odds favour a test of 20-day/50-day MAs at minimum with rising channel support not far away.

More worryingly for bulls, the Russell 2000 finished below its 50-day MA after spending part of the day above it.

While semi-conductors didn't get close to its 50-day MA and finished closer to its 20-day MA. Not good.

But while there is still buying interest in Large Caps the rally remains in intact - if very (very) long in the tooth. In any respect, can't see Thanksgiving week delivering much on either side of the equation.

Dr. Declan Fallon, Senior Market Technician, November 2009 has seen a significant upgrade and is on course to becoming the eBay of finance with our new Beta MarketPlace and a new rich internet application for finance, the Zignals Dashboard. Zignals now has new fundamental stock alerts, stock charts for Indian, Australian, Frankfurt and soon Canadian stocks, tabbed stock list watchlists, multi-currency portfolio manager, active fundamental system stock screener and trading system builder. New Forex and Index data.