Markets Behaving Well

With the indices spending another day near joint resistance of declining channel lines and 50-day MAs, each are nicely set to push higher, although momentum oscillators favour a retreat. The Nasdaq looks best positioned to move higher as it spent a third day above 1,534 near term support.


Transports behaving well with the slump in oil prices. With stochastics overbought it will be important for the next downleg to make a new higher low:


Same goes for the S&P; the mini-pennant for the past 3-days is likely to breakdown given overbought stochastics and the presence of its 50-day MA overhead.


There is more to like here about the markets and I suspect the real value buyers will take advantage of the next downleg, thereby helping in creating the higher low.

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