Tuesday, November 18, 2008

Backtest completed in S&P

Stochastics completed their backtest and switched to a 'buy' based on technical support. With respect to price, the index has returned to support of the mildly declining price channel. There is very little wiggly room for downside, so the index has to rally from the get-go and stay above yesterday's close. Note bear trend strength is weakening and volume patterns have sided with bulls.

Transports doing likewise - although stochastics haven't switched to a 'buy'.

But breadth indicators remain mixed with a heavy bearish bias (particularly Summation Indices):

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