Saturday, September 05, 2009

Weekly Stock Market Commentary

Labor day weekend is here but last Thursday's and Friday's action brought the market back from what had looked at the start to be a typical seasonal weak September. The strong finish helped the S&P hold the 1,000 level; the bearish divergence in the MACD held as Stochastics bumped along overbought levels.

The Nasdaq is working on clearing the 2,020 resistance level (changed from the previously listed 2,010; 2,020 is more accurate). As with the S&P there is the bearish MACD divergence and heavily overbought stochastics to work from:

Sentiment held to bearish form for both Nasdaq and NYSE:

It's only a matter of time before weak sentiment catches up with the averages.

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.