Weekly Stock Commentary: New Weekly Buy Signals

The strong form for the markets stretched into another week. I was surprised with the positive reaction to the jobs report since it seemed to mark a logical reversal point for the market from a condition of overbought breadth indicators.

The S&P followed its break of 808 resistance with a climb above the stochastic 20 line.

The Nasdaq saw an upturn in supporting technicals but has yet to mount a serious challenge on 1,641 resistance.

The Nasdaq 100 cleared 1,299 resistance with a similar improvement in technicals.

But the Percentage of Stocks Above 50-day MA has topped out - an intermediate term down-leg is favored over the coming weeks.

However, the bear trend triggered in 2006 for the Summation Index is over

I'm still liking a correction in the short term but the long term health of the market has significantly improved.

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.

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