Weekly Market Commentary: (Another) Reversal From 52-Week Highs
Last week, the number of 52-week Highs / Lows in the Nasdaq and NYSE flashed a new peak and reversed by weeks end. The peak in the NYSE New Highs / Lows was more prominent than the Nasdaq, although the last peak didn't result in a consolidation/decline. However, the chances are high that this peak will lead to a consolidation/decline, and this will remain in play until the next swing low (peak in 52-week Lows). Taking Profits should be the focus until the worst of the decline plays out.
The Percentage of Nasdaq Stocks above the 50-day MA reversed just shy of overbought territory. Technicals also turned tail before hitting the overbought mark. This increases the probability for another leg higher before a true top comes into play. This will offer another chance to take profits should it come to fruition.
Meanwhile, the Nasdaq is not showing any obvious signs of a top. So it's left to breadth metrics to suggest a top is in place.
The Russell 2000 reversed off channel resistance in a potential short play opportunity. Stops go on a break of 1,008.
The Dow is another index at channel resistance. Stops for shorts on a break above 15,542.
Next week will be about preserving profits, and building potential short plays second. Large and Small Caps are offering good shorting opportunities. The Nasdaq is suggesting a top, but another throw over leg higher is not outside the realms of possibility. Be Prepared.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. You can read what others are saying about Zignals on Investimonials.com.
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The Percentage of Nasdaq Stocks above the 50-day MA reversed just shy of overbought territory. Technicals also turned tail before hitting the overbought mark. This increases the probability for another leg higher before a true top comes into play. This will offer another chance to take profits should it come to fruition.
Meanwhile, the Nasdaq is not showing any obvious signs of a top. So it's left to breadth metrics to suggest a top is in place.
The Russell 2000 reversed off channel resistance in a potential short play opportunity. Stops go on a break of 1,008.
The Dow is another index at channel resistance. Stops for shorts on a break above 15,542.
Next week will be about preserving profits, and building potential short plays second. Large and Small Caps are offering good shorting opportunities. The Nasdaq is suggesting a top, but another throw over leg higher is not outside the realms of possibility. Be Prepared.
---
Follow Me on Twitter
Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. You can read what others are saying about Zignals on Investimonials.com.
JOIN ZIGNALS TODAY - IT'S FREE!
