Tuesday, February 09, 2010

Stock Market Commentary: No Follow Through Lower

Markets closed higher, undoing the bearish challenge of yesterday and reinstating the reversal characteristics of last Friday. For the Nasdaq the narrow downward channel hasn't broken but it finished Tuesday on resistance with an indecisive doji on higher volume. The doji is good swing opportunity with a stop 1% on the flip-side lows; given the oversold nature of the market the break should be higher

Favouring the upside break for the Nasdaq is the channel breakout for the semiconductors

The recovery in large caps was pegged by resistance created by the prior reaction low but technicals favour a bounce.

Market breadth is firmly down, so a retest of last Friday's lows is still a distinct possibility. The long term breadth picture is showing significant weakness with a stronger market bottom some distance off.

Dr. Declan Fallon, Senior Market Technician for Zignals.com, offers a range of stock trading strategies for global markets under the user id: ‘Fallond’, ‘ETFTrader’ and ‘Z_Strategy’ available through the latest rich internet application for finance, the Zignals Dashboard; many are ranked in the top-20 for 3-month and YTD performance.

Zignals offers a full suite of financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock list watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own trading system and sell your trading strategy in our MarketPlace to earn real cash. Read what others are saying about Zignals on Investimonials.com; ranked top-20 software product out of 285 listed. Join today - it's free!