Stock Market Commentary: Spinning Tops

A late day rally reversed the bulk of Monday's losses which turned what was a looking a decent day for bears into something more neutral. The Nasdaq and Nasdaq 100 maintained their healthy form staying well above their respective 20-day, 50-day and 200-day MAs. The Nasdaq enjoyed a "Golden Cross" between its 50-day and 200-day MAs; a long term bullish signal. This followed a similar cross for the Nasdaq 100 at the end of May.

The semiconductor index also has a "Golden Cross" working in its favour but has a 'Bull Trap' and a bearish divergence in its MACD trigger line pressuring the bulls.

In terms of market breadth there was a mixed signal from the Percentage of Nasdaq stocks above their 50-day MA. On the bull front was a MACD trigger 'buy' above the bullish zero line but a bearish divergence between the breadth indicator and the Nasdaq itself.

So - will tomorrow break the impasse?

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[1] Register at Zignals.
[2] Go to Charts and select a stock (you will be prompted to download Microsoft Silverlight)
[3] Click on the YourCall Icon

[4] Enter a Call by giving a stop and target price; make sure the Time Period is set to Short (month)
[5] Enter as many calls as you like up until the end of June; these can be long or short signals
[6] Send me your Zignals Userid so I can track the calls made ( or post it in the comments section of this post. In your email make reference to the competition.
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Good luck!

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.

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