Tuesday, May 26, 2009

Weekly Stock Charts review from Stockcharts.com Publishers

With summer here it's the start of quiet time for the markets. What had the last week brought for the markets.

Yong Pan of Cobrasmarketview regained control of the top of the Stockcharts.com table by five hits. There was no major change on the sentiment front with neutral short term signals and bearish intermediate term signals.

Peter is watching for a break of $88 on the SPY to create a new lower low.

'Sell' signals have crept into the weekly charts:

On the 60-min chart the battle lines are drawn

Tomas Leszczynski of Santoren.com has a target of 820 for the S&P or a 10% trim from where it lies now.

You can see how this plays out on the arc but it looks like it could be a sharp move down, perhaps with follow through to 760?

Keep an eye on the monthly DOW chart of Richard Crockett's (Stocktiger.com). With just a few days left in May the shooting star is looking to be part of a larger advancing block.

Richard Lehman has become more skeptical of the short term 'bullish' picture.

5/24 -- Friday's afternoon selloff left a negative leaning to the short term charts. Many had only recently bounced off the lower green or black lines and are now already rolling back over. A break of the green upchannels or the black sideways channels could get rather negative as it clearly ushers in a steeper downtrend than has been evident so far. So the next day or so are somewhat critical to the short term.

5/21 -- As you can see, I drew in downchannels on a number of the hourly charts now as the minis say that's where we are. The topping process continues with more charts exiting the upchannels (green)from March. However, nothing is steep yet and the exits are largely sideways or slightly down, so maybe this is just a sideways type consolidation of the uptrend.

5/21 -am- I drew in the possible larger downtrend now on the QQQQ hourly. That's my leaning on the bigger picture here.

5/20 -- Well I did say lower today, but I didn't expect the rocket shot first. So we got a top-to-bottom move today in the blue minichannel on the DJIA and look at where the index closed -- right on that line! Same with SPX! But the Naz and QQQQ broke their lines and I think the large caps will follow. This strengthens my view that these short term channels are minis and that there is a larger channel at work. Right now, that larger channel on the DJIA is heading up as you can see on the hourly chart, and the last low did not go all the way to the lower channel line -- so maybe it will still do that. In other words, the correction may not be over yet on the move up from March 10th.

Finally, Dr. Joe has a good mix of charts for viewing:

Happy Trading!

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.