Saturday, March 28, 2009

Weekly Stock Commentary: No Major Break

No significant change on the weekly picture. What I am liking most is the developing Adam-Eve bottom in the Nasdaq 100 even if the earlier 'buy' signal was weakened by the return of stochastics to oversold territory; watch for the break of resistance

There is a case for a breakout in the S&P:

The Percentage of Nasdaq stocks above the 50-day MA is overbought and this does at least point to an upcoming period of weakness, although stochastics suggest there is a little more upside in the near term (the S&P version hasn't quite touched overbought levels).

But the indices themselves suggest this pullback will be a buying opportunity.

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