Saturday, February 28, 2009

Weekly Stock Commentary: It Just Keeps Getting Worse.

It had looked like last November lows were going to be the lows of the secular bear, but this will not be the case. Volume soared to register a distribution week and the losses have no clear end. The S&P has a measured move target around 555; it seems a long way away but you never know in this market.

The Nasdaq hasn't yet breached November lows but it looks inevitable it will.

Especially when you see breadth indicators like the Bullish Percents in neutral territory. However, although stochastics have room to fall I don't think the indicator itself will ever get back below 10%.

Similar story with the Pecentage of Nasdaq Stocks above the 50-day MA; note neutral stochastics.

Don't give up the day job.

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