Wednesday, August 19, 2009

Market Sentiment: MACD 'Sell' for Nasdaq Summation and Bullish Percent Indices

Yesterday's recovery wasn't enough to prevent new MACD 'sell' signals in the Nasdaq Summation Index or Bullish Percents. These signals followed the earlier MACD 'sell' in the Percentage of Nasdaq Stocks above the 50-day MA.

Adding to the malaise was the confirmed bearish divergence in the MACD with respect to the Bullish Percents.

Looks like it's going to be another weak start for the indices so look to these sentiment measures to weaken even further.

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.