Saturday, November 21, 2009

Weekly Market Commentary: Toiling at Resistance

A weak close to the week left markets lingering around resistance, but close enough to keep things interesting for bulls. Supporting technicals have been on a downward turn since April, but these haven't broken any market yet. The Nasdaq shows weekly resistance and the challenge ahead for bulls; but no break yet.

Contrary to the Nasdaq, the Nasdaq 100 actually managed a weak technical 'buy' in its MACD. However, it does have the benefit of a resistance break. This may be the ticket to help the Nasdaq work higher.

But the leading index, Russell 2000, finished on a bearish 'gravestone doji' at the low of the weekly range - not good for bulls. A break of weekly lows would be a reason to short (on a long term timescale) with a stop on a move above 605.

Weekly breadth has long since sided with bears; but the hardest hit Percentage of stocks above their 50-day MA has recovered enough to leave it in neutral territory; not good news for bulls given the selling pressure from other market breadth measures.

Market action and breadth indicators favor resistance holding. The creeping weakness may take down the Nasdaq 100 rather than have it lead other markets higher.

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.