Saturday, May 23, 2009

Weekly Market Commentary: Long Weekend

It was no surprise to see the week end on a quiet note. All this contributed on the weekly charts was a lengthy period of indecision confirming long standing resistance; most notably 1,759 in the Nasdaq

and 517 for the Russell 2000. The Russell 2000 is nicely set for a second reversal head-and-shoulder pattern assuming the index drops back to 370 or thereabouts.

It is looking clearer on the weekly charts that there is a 'sell' for both the Nasdaq and S&P.

Take at least some of the profits you may have and trail a stop on the rest, but now is not looking to be a great buying opportunity.

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.