Tuesday, February 17, 2009

Stock Market Commentary: Hope dissipates

Resistance from July-August kicked in for the Nasdaq preventing the breakout the market craved. The resulting gap sliced through 20-day and 50-day MAs, coming with a MACD trigger 'sell'. January lows have held but with large caps looking at November lows I wouldn't expect this to stay this way.

Large caps really took it on the chin. The Dow is likely to slice through November lows as the chart deteriorates rapidly.

The bastion for tech leadership - the semiconductors - lost out heavily. The resistance breakout is practically cooked and supporting technicals all turned negative.

Going down (yet again...)

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