Wednesday, September 16, 2009

Stock Market Commentary: Melt Up

It is becoming increasing difficult to identify stalling areas in this market. Today saw strong gains on good volume; gains which were sufficient to push through rising (6-month) channel resistance - accelerating the rate of advance. While bears are getting crushed it's probably hard for bulls to know when to step off the train, so look for markets to keep on rising. There was very little today to suggest a top is coming soon, even though market breadth is screaming for one.

For the Nasdaq I have drawn a new, sharper, upward channel

But today's real winner was the Russell 2000; it has soared to new highs and is well inside its July-September channel

The only laggard was the S&P - but it's a laggard because of the slower rate of ascent

If September is to prove itself as a seasonal blue period then markets will have to lose *a lot* for this to come true and time is running out for this to happen.

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.