Weekend Market Commentary: Ticks Higher

The weekly picture for the indices continued to drive in favour of the bulls. Long term stochastics [39,1] are approaching areas which have proved to be resistance in the past but are nowhere near overbought.

Since the March bottom the S&P has enjoyed four accumulation weeks to one distribution week - although volume has dropped considerably from latter 2008 and early 2009.


The Nasdaq has seen five accumulation weeks to no distribution week. Long term stochcastics have only just pushed above the mid-line.


The Nasdaq 100 was the most interesting as it had held above last week's break of 2006 low resistance. Former bearish head-and-shoulder support (currently resistance) from 2007/08 is next on the target list. It has seen more distribution weeks but carries the strongest price action.


Breadth indicators haven't given a clear 'sell' signal but are (negatively) diverging to the parent indices.

No real inclination of a top, even if overbought.

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[1] Register at Zignals.
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Good luck!


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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