Fallondpicks.com: Weekend commentary

Bears took the honors on Friday's close; modest losses on light volume shouldn't panic the bulls too much. With large intraday ranges from Thursday, one shouldn't be surprised to see a series of low volatility down days to mark a test of last weeks lows.

The NASDAQ and NASDAQ 100 held to the greater strength of bearish gaps over Thursday's bullish hammers. Technicals continued to weaken which suggests retests of Thursday lows are favored. Even the semiconductor index, the most oversold of the technology indices, looks favored to test its lows.

No index was able to escape the predicament of the NASDAQ and NASDAQ 100, the Dow, S&P and Russell 2000 all look likely to repeat the action of the aforementioned indices. Watch for retest of Thursday's lows the take home message. Bullish divergences in the MACD histogram of all indices should soon bring the bounce indicated by the secondary tech indicators [$NASI, $NAA50 and $BPCOMPQ]. Continue to watch the new highs list and Breakout plays for buying candidates.

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