Sunday, February 13, 2011

Weekly Market Commentary: Nasdaq Ready to Run?

Can the Nasdaq follow the Nasdaq 100 higher? The index cleared a five week consolidation and is on the cusp of pushing through supply and into 'fresh air'.

AAAA Nasdaq

via StockCharts.com

The Nasdaq 100 is leading the way. It too cleared its consolidation, but from a position of strength (i.e. limited supply). The trend is your friend.

($NDX)

via StockCharts.com

The Russell 2000 is also catching upward momentum with a bull flag breakout. If it plays out as a measured move then look for a push towards 1,000.

($RUT)

via StockCharts.com

The S&P is also above a resistance level and has 1,440 in its sights

($SPX)

via StockCharts.com

Overall Market Breadth for Nasadaq and S&P is in general decline (bearish divergence), but is far enough away from resistance to suggest this rally could move higher. The Nasdaq Summation Index is one such example, moving to a confirmed 'Sell' Trigger but offering upside potential.

($NASI)

via StockCharts.com

Play it long until proven otherwise. On the weeklies, this means an undercut of last week's low as a minimum.

Follow Me on Twitter

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.

Zignals offers a full suite of FREE 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.

You can read what others are saying about Zignals on Investimonials.com.

JOIN US TODAY - IT'S FREE!

 
f9229fcfd1b1390be00cfccc86c90349c93a4179bf4227457c