Saturday, July 11, 2009

Weekly Market Commentary: Contradictions Continue

More of the same from last week; a downward market supported by rising long term stochastics. Volume climbed to register a distribution week; the second such week since the last accumulation week (S&P is a good example). Market Breadth indicators all showing confirmed 'Sell' signals.

The Nasdaq shows the sharp advance in long term stochastics as the index toys with weekly support around 1,759.

Small Caps weakest with long term support gone; it's now looking at late 2008 reaction lows for demand from buyers

However, Market Breadth is in no doubt - markets are in a clear 'Sell' environment

But at least Bullish Percents are approaching a relief 'Buy' signal

Stick with the trend - the trend been down.

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.