Wednesday, May 06, 2009

Stock Market Commentary: Another Set of Bearish Candlesticks - But Does It Mean Anything?

A day of divergences where money shifted from Tech to Large Caps. Both the Nasdaq and Nasdaq 100 finished with bearish Hanging Man candlesticks with sizable volume reflecting the churn. However, it was the sharp shift in relative strength in favour of the S&P which is of greater concern for this rally.

The Russell 2000 acted in the middle and retains its overall leadership of the market. It still has room to get to 515 resistance or the 200-day MA.

As a final note the MACD of the Nasdaq Summation Index is on a 'Sell' Trigger.

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.