Weekly Market Commentary: Large Caps Break 'Bear Flag' Resistance
It was a solid end of week for Large Cap indices, even if trading volume was a little on the light side.
The Dow cleared a thick band of supply between 11,730 and 11,895 and pushed into congestion of early 2011. It has been a straight rally from the 10,400 low so the former band of supply should now play as demand. Look for buying volume to increase on the next push below 11,900.
Likewise for the Nasdaq. Helping it is the higher volume accumulation enjoyed over the week.
As for next week, keep an eye on Large Caps. It will likely be a 'soft' week with little net change. But with seasonal factors playing more of a role as year end approaches any weakness will likely play as an attractive buying opportunity.
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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 Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.
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The Dow cleared a thick band of supply between 11,730 and 11,895 and pushed into congestion of early 2011. It has been a straight rally from the 10,400 low so the former band of supply should now play as demand. Look for buying volume to increase on the next push below 11,900.
The S&P was able to push past strong resistance of its own at 1,209, although it finished the week just shy of minor resistance at 1,300. A successful back-test of 1,209 would be preferable (against a further push higher) to confirm the breakout.
The Russell 2000 is up against 'bear flag' resistance, but given the action in Large Caps a break higher is favored.
Likewise for the Nasdaq. Helping it is the higher volume accumulation enjoyed over the week.
As for next week, keep an eye on Large Caps. It will likely be a 'soft' week with little net change. But with seasonal factors playing more of a role as year end approaches any weakness will likely play as an attractive buying opportunity.
-----
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 Trading Strategy Marketplace 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 strategy and sell it in the MarketPlace to earn real cash.
You can read what others are saying about Zignals on Investimonials.com.
JOIN ZIGNALS TODAY - IT'S FREE!
