Monday, November 16, 2009

Stock Market Commentary: Breakout!

Following the lead of Large Caps were breakouts for the S&P, Nasdaq and Nasdaq 100. But not to be out-done, there was a second breakout for the Dow to take it outside of its 5-month channel. All breakouts were achieved on higher volume - marking another day of accumulation for the markets.

Relative strength has swung back in favor of tech over large caps - a bullish development. But small caps continued to underperform, although they had a good day today with a net bullish turn in technicals.

The semiconductors didn't disappoint either by breaking through its 50-day MA.

Of breadth indicators, the Nasdaq Summation Index made a bullish cross of its 5-day EMA from a relatively oversold position. Supporting technicals also edged higher with a 'buy' in the Ultimate Oscillator.

Tomorrow will be interesting. Breakouts in play but can support hold on the next round of weakness? A quiet consolidation day would be an ideal scenario for the markets.

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.