Friday, April 03, 2009

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, the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.