Monday, October 04, 2010

Weekly Review of Stockcharts.com charts

Will October offer bears the seasonal weakness they crave (need!). Anthony D Allyn of Elliotwavehound.com offers a bearish prognosis.

Market Outlook for Monday Oct 4st: 5th bearish candle in a row~! All indicators point to a Black Oct. The smart money has already sold and gone short, while market sentiment hits recent highs. The easy money is finally about to be made on the short side, and no amount of manipulation can prevent it. The media campaign... to change investor sentiment has failed miserably.
Looks like September support has gone.


The intermediate picture favours a move to - rising - channel support


Bearish candlesticks illustrated for the Dow.


However, the Dow Jones Oil and Gas Index looks to have defied its bearish picture with a clear breakout.


Richard Lehman of Channelist.com is also watching for topping action.

10/3 -- Oil and gold riunning as the dollar declines, but equities now showing signs of topping out. Watch the short term charts for breaking green channels as early as this week.

9/29 -- Momentum is waning again, particularly in small caps. Some charts may break teh green upchannels going sideways at the current pace. Long terms are still very toppy. I wonder what will happen if the Fed stops injecting liquidity and the end-of-quarter window dressing ends.

9/29 -am- Tuesday POMO struck again. Liquidity is generated by the Fed, the dollar gets hit, and gold and stocks rise. See the UUP chart.

9/28 -- The short term green channels on the broad market indexes are drawn wider now (due to last week's brief selloff which came back into trend). Therefore, the market can back off again now without immediately breaking the uptrends. It is definitely tired and overbought, but Fed action and Q3 window dressing may help it hold up a bit longer. Long term charts remain very toppy.

9/23 -- Looks as if the broad market is finally rolling over, but cannot quite draw new downchannels yet. Hopefully will have enough data to draw minichannels on Friday.

9/21 -- Today's lift made things verrrrrry toppy. The fact that recession officically ended many months ago may reduce the fear of big decline (for the moment), but is no reason to send things into the stratosphere. Many charts are now at upper lines on the long term charts.
His alternate Bull channel for the Dow is worth a look; if true support should kick in before 10,000 is reached.


Yong Pan of Cobrasmarketview summary of breadth indicators still has a remarkably neutral view of the market


His automated strategy is still showing a long signal


And the head-and-shoulder bullish reversal is intact


Dr. Joe gives his week in review.


His GLD stochastic system is holding form - a 'sell' signal soon?


Even the Gold and Silver Index is looking toppy on Full Stochastics - note coiling action.


Finally, Michael Eckert of EWTrendsandcharts.blogspot.com has his EWT count for the S&P daily:


It's by no means plain sailing for bears. Slight gains will do enough to throw a cat amongst the pigeons with respect to broad channel resistance where many markets now trade. A decline will come when traders least expect it; perhaps a failed 'Santa Rally' is a more likely scenario for a decline?

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!
 
f9229fcfd1b1390be00cfccc86c90349c93a4179bf4227457c