Tuesday, December 01, 2009

Stock Market Commentary: Large Caps Going Alone

Lots of Huff and Puff with across the board accumulation days, but only large caps look like they are going anywhere. The Dow held its breakout and the S&P is close to a new high, but other indices are losing steam.

The semiconductor index was the only bright spot with its 3% gain and move above its 50-day MA. Whether it can push beyond the illustrated declining channel will become clear over the coming days. Should it manage to do so it will go a long way to pulling the Nasdaq and Nasdaq 100 out of their current rut.

Sentiment has weakened once more which will add further pressure to the rally. Bullish Percents are looking the most vulnerable following the break of July reaction lows:

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