Weekly Market Commentary: Modest Gains But Not Oversold
The week closed with modest gains after last week's confirmed 'Sells' across the board. While there may be some indication of short term bottoms on daily timeframes there isn't the support on the weekly picture - either from the indices themselves or from breadth indicators.
For the S&P short-term stochastics look to be a couple of weeks away from a bottom - with longer term stochastics months away from doing so (although these could find support at the bullish mid-line if this is a true bull market). The S&P sits at a former resistance level - now support - at 1,062, but Fib retracements look better for a stronger bottom.
Small Caps have returned below the two resistance levels, leaving behind a bull trap
The Nasdaq is stuck in a no-mans land between support and resistance
While Nasdaq breadth is weakening, it hasn't yet reached true oversold levels (although supporting technicals have). Bullish Percents are closer to overbought.
While the Percentage of Stocks above the 50-day MA are nearer to oversold.
With the Summation Index somewhere in-between
So while the daily charts still favour a continuation of the rally, weekly charts aren't so promising for a sustainable bottom - yet.
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For the S&P short-term stochastics look to be a couple of weeks away from a bottom - with longer term stochastics months away from doing so (although these could find support at the bullish mid-line if this is a true bull market). The S&P sits at a former resistance level - now support - at 1,062, but Fib retracements look better for a stronger bottom.
Small Caps have returned below the two resistance levels, leaving behind a bull trap
The Nasdaq is stuck in a no-mans land between support and resistance
While Nasdaq breadth is weakening, it hasn't yet reached true oversold levels (although supporting technicals have). Bullish Percents are closer to overbought.
While the Percentage of Stocks above the 50-day MA are nearer to oversold.
With the Summation Index somewhere in-between
So while the daily charts still favour a continuation of the rally, weekly charts aren't so promising for a sustainable bottom - yet.
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!
