Wednesday, January 28, 2009

Stock Market Commentary: Mixed bag

Solid gains helped some indices more than others. Troubling moving averages were cleared for the Nasdaq, Nasdaq 100 and Russell 2000; but for the Nasdaq 100 this meant running into larger declining resistance dating back to last September.

The semiconductor index encountered similar resistance and tomorrow will be a big day for the it; a break could set up a run to the 200-day MA

Breadth indicators for the Nasdaq are all bullish (once more); perhaps there is more to the 'Santa Rally'? Best of all, the Percentage of Nasdaq Stocks Above the 200-day MA made sharp gains, suggesting more stocks are turning long term bullish.

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