Tuesday, April 14, 2009

Stock Market Commentary: Is This A Top?

A significant increase in selling volume pushed markets away from Friday's highs but will this selling mark the first stage of a top? The large number of gaps in the charts (Nasdaq below) reflects a market getting ahead of itself. My earlier comments with respect to market breadth also show a downward turn is long overdue. However, supporting technicals haven't switched negative even if overbought.

The Dow honored resistance and is wedged between rising support from March lows and the declining resistance line from last year; Wednesday will be a big day.

Although the S&P has already cleared its declining resistance - will the Dow follow suit?

Anyone's game?

Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.