Stock Market Commentary: Black Candlesticks Spell Trouble

The Nasdaq tagged its 200-day MA after the morning gap faded into the close. The higher volume reflects churning as profit takers hand over to weak holders.


The Nasdaq 100 also flashed a black candlestick but held above its 200-day MA - but it is questionable how long it can continue to hold this moving average. Large and Small Caps were relatively uneventful.


Ironically, the semiconductor index pushed through its 200-day MA without the signs of weakness developing in the Nasdaq and Nasdaq 100.


Typically the SOX leads but in this instance I think it will succumb to the developing downwind in the Nasdaq and Nasdaq 100.

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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