Sunday, February 08, 2009

Weekly Stock Market Commentary

Interesting action on the weekly charts. For the S&P last week ranked as one of accumulation with a respectable uptick in the supporting MACD; although stochastics remained oversold.

Similar trends played out in other indices but nothing to indicate a powerful reveral.

The December 'buy' signal holds for many of the indices; the Nasdaq 100 is close to triggering one of its own:

But the Nasdaq Summation Index still has significant weekly resistance to break

Certainly last week was better than a collapse, but it will take more than one week to put a sound footing in place. The way things are looking (deep oversold conditions and a squeeze in breadth indicators) we could be in for a protracted sideways market for the bulk of 2009.

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