Tuesday, February 03, 2009

Stock Market Commentary: Flatters to Deceive

Small gains which still weren't enough to break through 50-day MA of the Nasdaq or Russell 2000; 50-day MAs of the S&P and Dow remain some distance away. Volume was slightly higher, suggesting modest accumulation - but nothing more.

Technicals of the Nasdaq Bullish Percents are all negative, supporting the idea of an intermediate top. Potential Nasdaq buyers remain best served by waiting for the 50-day MA to break.

Buyers are unwilling to get involved and this means weaker prices from lack of demand rather than active selling.

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