Sunday, November 08, 2009

Weekly Market Commentary

It was a week where bulls made the most daily headway, but the weekly picture offers a more bearish slant. Weekly market technicals all fell but momentum indicators still hold enough to stay on the bull side - just. The Nasdaq closed the week with a MACD trigger 'sell' but stochastics are comfortably overbought. The index also held 2,020 support.

The Nasdaq 100 continued its battle around 1,702 support with a MACD trigger 'sell'

Meanwhile, the Russell 2000 looks ready to test neckline support c517

Prior comments on the Bullish Percents still hold true; big down weeks don't immediately translate to market weakness.

The Percentage of Nasdaq stocks above the 50-day MA is at a support low, but unlikely to be the low for the ongoing decline

As the Nasdaq Summation Index is only halfway to its likely low

Markets have probably seen their first significant reaction low for the decline, but I would be surprised if the current bounce makes it to new highs. However, that does not mean the current rally is done and at least another week of gains is probably on the cards.

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