Saturday, January 09, 2010

Weekly Market Commentary: Rolling on Higher

Bulls have kicked off January in bright fashion which should be a bright omen for the rest of the year if the January-effect plays out (although CXO Advisory nixes the idea you might make money from it).

The S&P has pushed past the 50% retracement and is ready to challenge the 62% level and reaction hi/lo support c1,222.


The Nasdaq has shown little signs of slowing its advance. It looks set to challenge 2,465


As the Nasdaq 100 leads indices higher


With the Russell 2000 breaking declining resistance:


The Percentage of Nasdaq Stocks above the 50-day MA is up against declining resistance at overbought levels - but this was the story for most of 2009 without the expectant collapse in equity prices; the confirmed 'sell' in early July would have banked little if you went on the prior confirmed 'buy' in late 2008. So take it with a pinch of salt. There was a 'weak buy' two weeks ago.


The Summation Index triggered its 'weak buy' signal with room to resistance. Will this support a rally to the mid-2008 reaction high for the Nasdaq?


Bullish Percents have yet to give a 'weak buy' - but it was late with its confirmed 'sell' trigger on November 13th. Also note how the similar big 1-week loss in 2007 was followed by a string of gains - could be a couple more weeks of bullish action left in the tank.


Bulls keep on rocking it!


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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