Wednesday, May 28, 2008

Bullish Percents all in the red - intermediate down trend in play

May 21st saw the bullish percents of the Nasdaq and S&P follow that of the Dow with a bearish cross of the 5-day EMA. The S&P compounded the loss with a break of rising support connected by March-April dips using closing price.

Overall, these breadth indicators haven't fully reached typical tops for either a bull or bear market. If the cyclical bull market is still in play - which I don't think it is - then these can move much higher before a top is signalled.

Dr. Declan Fallon, Senior Market Technician, the free stock alerts, market alerts and stock charts website