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)

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, the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.

Popular posts from this blog

Nasdaq primed for breakout

S&P "Bull Trap"?

"Black Candlesticks" are a concern for the S&P and Nasdaq


Show more