Thursday, November 05, 2009

Stock Market Commentary: Bulls Start Well and Maintain It

After Yesterday's close it looked like bears would run rampant, but instead what emerged was a gap higher and more improbable (in my opinion) run. Volume was a little disappointing but one can't deny the points on the board.

First up, the Nasdaq cleared its 50-day MA.


The Nasdaq 100 managed a little better; it broke through its 50-day MA and made it to its 20-day MA.


The Dow enjoyed one of its biggest days - the kind of day last seen during the July bottom (without the volume).


The Russell 2000 recovered the points it lost when it cracked through 576 support. It's next fight is up at converging 20-day and 50-day MAs.


Breadth indicators are close to an intermediate oversold condition and are mapping in a manner which is close to what I would have expected for them; given that, the rally should offer a little more legs.


So watch those overhead 20-day and 50-day MAs.


Dr. Declan Fallon, Senior Market Technician, Zignals.com. 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.

 
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