Monday, March 09, 2009

Stock Market Commentary: Bulls are kept waiting

Another day another decline. Volume remained remarkably complacent which doesn't bode well for capitulation watchers. Technically, the Nasdaq MACD has approached its bullish divergence but this has meant little in other indices so it is questionable whether it can help support a bounce.

The drop in volume may be helpful for the Dow; it could signal sellers exhaustion but it's not a convincing argument.

Breadth indicators suggest some more downside is needed before we bounce

If there is a glimmer of light it's that the next rally will be a big one - the problem is it probably won't stick.

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