Wednesday, October 29, 2008

Bear Bounce

The good news is the huge rally buys the bulls some room for maneuver. The bad news is it didn't change the picture too much with the exception of some MACD trigger 'buys'.

The two sectors to watch for recovery are the Transports:

Note the new triangle/wedge which closed yesterday on resistance. Can it break?

Same for the tangle of resistance in the semiconductors:

The job of breaking resistance looks easiest for the Transports, but the degree of work bulls need to build a recovery is clearest in the semicondutors.

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