Saturday, September 22, 2012

Weekly Market Commentary: Russell 2000 Ready to Break

Indices continued their advance, holding the breakouts from last week.  Volume dropped as markets finished the week in the upper range of the previous week. The only index waiting to break is the Russell 2000.

The Russell 2000 is finely poised to clear 868 resistance. Technicals are net bullish which favors a break of resistance.


The S&P is well above resistance, turned support (1,400). The index enjoyed strong accumulation for the best part of 3 years and continues to perform.


The Nasdaq has also enjoyed strong accumulation for the past 3 years.  Support is established at 3,100 and is a good place for a pull-back 'buy.


Nasdaq Bullish Percents gained ground but hasn't yet reached declining resistance currently at 62.5%.


The Nasdaq Summation Index also posted a weekly gain.  But it doesn't look to have reached a top given resistance usually doesn't appear until it hits 500.


Only the Percentage of Nasdaq Stocks above the 50-day MA suggests a swing high is in place for the Nasdaq.


For next week, look for the rally to continue as breadth indicators, other than the Percentage of Stocks above the 50-day MA, work towards resistance.

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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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