Weekly Market Commentary: Quiet Close to Week

The S&P mapped another week pegged at resistance. The bearish divergence in the MACD histogram hasn't changed and the week ended in modest accumulation.

The Nasdaq put further ground between it and its declining trendline resistance, but the 2006 reaction low lingers as potential supply. Like the S&P it recorded a mild accumulation week.

Sentiment rallied but still looks horribly overbought.

Or engaged in significant bearish divergences:

It's hard to match the daily optimism to the weekly situation in the markets but this has been going since the June highs. But even with this, markets could rally for another year and continue to see these divergences develop.

However, a continuation of the rally - even that lasting a year - may only add another 10%. It's hard to see another 50% getting tacked on to any market.

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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