Thursday, March 25, 2010

Stock Market Commentary: They Came - They Saw - They Left

Bulls had looked to had got the jump on bears with very strong early gains, but it was just too much to maintain and the usual debt concerns came back to haunt the markets. Thursday's shooting star for the S&P added to yesterday's bearish harami with a good dose of distribution volume; Friday could be an ugly day for the index.

The bearish shooting star made its presence felt for the Nasdaq, also with confirmed distribution. Rising support is a little further away and the upcoming MACD 'sell' will likely see the start of a short term decline (more than just a couple days worth of weakness). 

Small Caps have already triggered a 'sell' in their MACD.Note underperformance to Tech averages - a bearish development as speculative small caps lose their leadership role.

The Percentage of Nasdaq Stocks Above the 50-day MA also triggered a 'sell' in its MACD in addition to its test of the bearish divergence. Another tick in the bear column.

Friday is looking like it's going to be all bears. Of my breakout scan there were 27 stock candidates, but other than a handful there was none which stood out.

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