Weekly Stock Market Commentary: Fresh Breakout

Another week of gains for the indices. Volume was down (surprisingly) for the first 'real' week of trading follow the Labor day weekend. The Nasdaq ended the week with a clear break of 2006 reaction low resistance with the next significant resistance levels at 2,475 and again at 2,550

The Nasdaq 100 will be of interest next week with converged resistance from the 2007/08 reaction low and former rising support now in play. The bearish divergence in the MACD histogram is also a concern.

A similar MACD bearish divergence is at play in the S&P; is there a resistance break to close the week?

Sentiment was unchanged with all key indicators overbought but this situation has continued since July => not much help.

So when will the next down-leg begin? Look to the Nasdaq 100 for leads...

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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