Monday, December 07, 2009

Stock Markert Commentary: Markets Pause as Semiconductors Rise

There was very little movement in any of the key indices; markets gapped down but there was no follow through to the downside from the Nasdaq, Nasdaq 100, S&P or Dow. The semiconductor index did manage to make gains up to 337 resistance and is poised to take on a leadership role if it can break through.

The Russell 2000 also sits ready to break out of a 7-week consolidation. While some 20 points away from its highs, a break will give confidence to the broader market as it will represent a shift back to speculative issues.

Relative strength has seen a significant shift through December with Small caps leading Tech leading Large Caps - the most bullish alignment for markets. Should the dollar continue to outperform then expect this relationship to continue.

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.