Sunday, September 26, 2010

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.

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