Stock Market Commentary: Weak Buying
Was today a bull trap? Big percentage gains on what looked to be 'buy-the-dip' action, but light volume told a different story. This rally will need new closing highs to prove its merits but Friday's reaction lows are a good place for a profit-take stop.
The Nasdaq had a MACD trigger 'sell' from Friday (+ bearish divergence)
![](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_sDyviLqCf6Zu7FLzzi3qfK0DgetF_1y_x0z9-PdQ57ddcuN3jQ-U-H4ENNSJ9q5CP9uqe1HuMLYPGPXswTAoBAhUWTTnGCOzWbabSadrsn1Q6zDkqKLBt8PYjagr_CxqPk1hVJ5PPtaF4J719PtBbwoMo=s0-d)
As did the Dow
![](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_tUpD2plCIIr0tJNJuG1xxTBi0xWxO4njRevwdDrDRR28Bvx6ZsEKxOZimuPlOYmlTNUUWPqJw8ZpsvQA7JsFGY551PXjgB1pVPL_94TN3ENJ6KfpdEbU6g3C_ILFhJNIv2HlnZvDtlHGXdOXNXT1D1=s0-d)
And Small Caps. But the Russell 2000 left its own mixed message with a favourable shift in relative strength (bullish); Small Caps > Tech > Large Caps.
![](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_vqrV28lbT2TPHJ7cykSpsVzHAsQqWdxqfs5T_MK_IqXFMF3XtI7DEJuwj-a-aKISNXW4Oqwark8EYYX_XN_Y18Ubr1D7e9qPbEQos-A9dn5ZsDK3TeMLeTItlf0MWli5rcNU-jkmi1Z9uAH72FAKCjjw=s0-d)
Market Sentiment showed its own vulnerability with the Percentage of Nasdaq Stocks above 50-day MA turning net negative on supporting technicals (with a bearish cross of the 5-day EMA) as its recent breakout clung on for life.
![](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_uvyZa1X2kaJTkFSkswwrti5l3au1YPXm8dtJmTYj10Wh-ywuSwpasaiTkiuJifraKIYhEsmT1YDn4Bnyt7nnDRNQ-UIBLzwWIlg2XDQCxCd7eJpPEO9eS_2jjVFYZH7oamD9-0E0PW42lQ5-0rvo9ChY54=s0-d)
Today looked to be a day of false buying.
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.
The Nasdaq had a MACD trigger 'sell' from Friday (+ bearish divergence)
As did the Dow
And Small Caps. But the Russell 2000 left its own mixed message with a favourable shift in relative strength (bullish); Small Caps > Tech > Large Caps.
Market Sentiment showed its own vulnerability with the Percentage of Nasdaq Stocks above 50-day MA turning net negative on supporting technicals (with a bearish cross of the 5-day EMA) as its recent breakout clung on for life.
Today looked to be a day of false buying.
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.