Weekly Market Commentary: S&P Breakout follows Nasdaq/Nasdaq 100 Breakouts

Friday's strong finish didn't just add another notch to the rally it also helped mark new breakouts on the weekly timeframe. The S&P saw a clear resistance break of its triangle, although volume was somewhat lacking.

($SPX)

via StockCharts.com

Last week the Nasdaq cleared downward channel resistance. This week it cleared summer resistance.

Nasdaq

via StockCharts.com

The Nasdaq 100 is putting pressure on the May bull trap. The index is very close to erasing all of the credit crisis losses.

($NDX)

via StockCharts.com

Nasdaq Breadth is also showing bullish form with a W-bottom in the Bullish Percents. This is the only Nasdaq and S&P breadth indicator I follow which is not on a technical 'buy' signal. Looks ready to reverse this very soon.

($BPCOMPQ)

via StockCharts.com

With the Percentage of Nasdaq Stocks above the 50-day MA fast approaching declining resistance.

($NAA50R)

via StockCharts.com

Small Caps weren't left out of the party and confirmed their breakout last week

($RUT)

via StockCharts.com


So while the daily chart rallies look extended, this rally is only starting to get going on the weekly timeframes. Bears will be hoping for bull traps - although this is looking unlikely for the Nasdaq 100.

Follow Me on Twitter

Build a Trading Strategy Business in Zignals



Dr. Declan Fallon, Senior Market Technician for Zignals.com, offers a range of stock trading strategies for global markets, also available through the latest rich internet application for finance, the Zignals MarketPortal or the Zignals Trading Strategy MarketPlace.

Zignals offers a full suite of financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock quote watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own trading system and sell your trading strategy in our MarketPlace to earn real cash. Read what others are saying about Zignals on Investimonials.com.
JOIN US TODAY - IT'S FREE!

Popular posts from this blog

S&P "Bull Trap"?

Image
I thought there was sufficient evidence to argue against a "bull trap" in the S&P, but it would appear the market wasn't interested in such thoughts and sellers were quick to reverse the initial push above 4,200.  Adding to the pain were new 'sell' triggers in MACD and On-Balance-Volume, although the former occurred above the 'bullish' zero line, making it a weak signal. Selling volume ranked as distribution as selling momentum picked up speed.  The index is also underperforming relative to the Russell 2000. 
Read more

"Black Candlesticks" are a concern for the S&P and Nasdaq

Image
A bright start for bulls on the back of positive $NVDA earnings wasn't enough to generate a day of meaningful gains.  However, it did help stall the losses of the last couple of days. The Nasdaq was the biggest beneficiary of today's action, but not enough to see an end-of-day finish that cleared last week's swing high, nor delivery of a large white candlestick, despite the morning breakout gap.  Technicals are net bullish and relative performance against the S&P has become consistently stronger since the start of May.  While today's candlestick I would view as typically 'bearish', today's volume ranked as confirmed accumulation (bullish). Overall, I would be looking for higher prices from here. 
Read more

Round 2 for the bearish "black" candlestick in S&P and Nasdaq

Image
The Nasdaq started brightly but ended up closing below its open price, but above yesterday's close. The S&P did something similar, although the intraday range is narrower. These two setups are somewhat complicated by the new 'buy' triggers in On-Balance-Volume for both the Nasdaq and S&P. And the new MACD trigger 'buy' for the S&P. Price action is key, so I would expect the candlestick to trump the technical picture; watch for lower prices tomorrow.
Read more

Archive

Show more