Sunday, March 27, 2011

Weekly Market Commentary: No Change

Markets maintained their weekly form despite the recovery on dailies. The Nasdaq still has to contend with the bull trap from 2,818. Last week's buying - while welcome - didn't registration as an accumulation week.

Nasdaq

via StockCharts.com

However, the Nasdaq 100 was able to defend 2,217 (2007 highs). But like the Nasdaq buying volume was light.

($NDX)

via StockCharts.com

While the Russell 2000 rallied off its bull flag backtest and is best poised to move to new highs.

($RUT)

via StockCharts.com

The S&P pulled itself back over 1,300, but the rally has sliced the channel down the middle - no advantage to bulls or bears.

($SPX)

via StockCharts.com

So for next week looks to Small Caps to lead out with the Nasdaq 100 and Nasdaq following suit. The latter should negate its bull trap. Large Caps should be able to tag along for the ride, but look to them to lag the more speculative issues. If the Russell 2000 struggles then it's going to be hard road ahead for all the indices.

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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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