Stock Market Commentary: Stall Out

Markets finished much as they did yesterday on light volume. Neither was there significant technical change in any of the major averages.

The only point of note was the new MACD trigger 'sell' for the semiconductor index as it traded around its 20-day MA.

A couple of important tests are due for the SOX; rising support connecting March-July lows, 50-day MA, and May-July reaction lows.

Of the sentiment indicators there was an reaction break of the August low in the Percentage of Nasdaq Stocks above the 50-day MA - will the Nasdaq to follow suit and break August lows? A similar scenario in May-June of this year failed to confirm so it can only be taken as a warning (the May reaction low for the Nasdaq was never breached even as the Percentage of Nasdaq stocks above the 50-day MA tumbled).

Will bulls try and build from today's lack of aggression on the part of bears? The long weekend will probably mean another limp couple days worth of action.

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.

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