Wednesday, April 08, 2009

Stock Market Commentary: Long Term Resistance Under Test

With the indices likely to trade quietly into the long weekend there is an area of interest currenty under test which bears long term significance. The break of a modest support line connecting 1990 and 2002 lows late last year in the Nasdaq is now experiencing a backtest.

The test is critical as earlier attempts from the rally off November lows stalled out at this line; the consequences could be damning with 1,139 support there to catch any break of 1,265.

This bear is a long way from dead.

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