Weekly Market Commentary: Powerful Gaps Through Resistance

The weekly charts showed some interesting changes, particularly in the Nasdaq and Nasdaq 100, both of which gapped through major resistance. The Nasdaq is on course to challenge the next level of resistance at 2,010.

Better news came from the Nasdaq 100 which surpassed 2006 reaction lows and is on the way to 2008 reaction lows c1,702.

The Russell 2000 also pierced resistance of 2004 reaction lows and may go on to test former (bearish) head-and-shoulder support turned resistance.

Of breadth indicators only the Bullish Percents closed the week at new highs and prior bull market reversals usually don't kick in until the 70s - maybe there is another couple of weeks of gains to come?

So - it's looking good again for bulls and the aforementioned resistance levels which are now support should be good places for GTC buy orders or stop orders on breaks.

Want to win the Trader's Business Plan prize?

[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 (declan-at-zignals.com) or post it in the comments section of this post. In your email make reference to the competition.
[7] The Zignals member with the stock giving the highest return from either a target hit or expiration after 22 trading days will win the prize. Only stocks or FX prices listed on Zignals qualify for entry (no pink sheet stocks). The announcement of the prize winner will be made at the end of July.

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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