Weekly Market Commentary: Gains But No Breaks

It was another week of to-and-fro in the market; this time bulls took markets to the upper part of their weekly ranges.

Only the S&P gave a hint of a possible breakout on the weekly chart. If the breakout is true (i.e. can hold above 1,300) then the next upside target is 1,440.

($SPX)

via StockCharts.com

The Nasdaq is still hemmed in by resistance at 2,818

Nasdaq

via StockCharts.com

While the Nasdaq 100 enjoyed a renewed push higher, trading well above 2,217 support

($NDX)

via StockCharts.com

Market Breadth ran contrary to gains in the Nasdaq. There were losses in Nasdaq Bullish Percents and Nasdaq Summation Index - although losses were small - they suggest a larger correction is required to take the heat out of the market.

($BPCOMPQ)

via StockCharts.com

The Russell 2000 is well above 760 support and is forming what looks to be a 'bull flag'.

($RUT)

via StockCharts.com

Markets on weekly timeframes haven't changed a great deal. There is perhaps a fresh breakout in the S&P to join the breakouts in the Nasdaq 100 and Russell 2000. The latter markets are well off support, but not close enough to resistance to suggest supply will become a significant issue. Nasdaq Market Breadth is weakening, but weakness is not enough to crack a rally. However, it's a warning the Nasdaq may not make it as far as resistance before correcting. As for a bullish signals, watch how the bull flag in the Russell 2000 plays out; a measured move to 1,020 is the ultimate (if somewhat ambitious) goal.

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Zignals Trading Strategy Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.

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