Sunday, August 22, 2010

Weekly Market Commentary: Finishes The Week Near Lows

Last week's bearish press continued with a late week flurry of selling which kept indices on the weak side. Technicals similarly weakened but none are at levels to suggest markets are oversold. The S&P is a prime example of this with stochastics [39,1] just below the 50 neutral line:



For the Nasdaq the head-and-shoulder neckline remains in play with lower highs and lower lows the order of the day (week!)



Nasdaq Bullish Percents fake a Stochastic 'buy' - big void down to lows...



The Percentage of Nasdaq stocks above the 50-day MA hasn't reached oversold conditions either (technicals and indicator)



Finally, Small Caps show a bearish head-and-shoulder reversal pattern with Friday's finish close to neckline support.



Look for more weakness next week. I am back on Tuesday with normal service (Twitter too) on Wednesday.

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