Weekly Market Comentary: Rally Continues
Although Friday's selling took much of the shine off the week's action it was still another victory to bulls. The good news is there is still plenty of room to resistance as the S&P illustrates - although it will be a while before a fresh 'confirmed buy' signal is generated.
The Nasdaq too is not short on long side opportunity although volume was down. Note new MACD trigger 'buy'
The Nasdaq 100 is the closest to resistance; only 45 odd points before it gets to the first of the 2008 reaction highs at 1,978; memories of the credit crunch far behind! Note too it enjoyed a new MACD trigger 'buy'. Keep an eye on this index next week - what goes here will likely play out for the Nasdaq and S&P. The Russell 2000 is not in the game simply because its comparable 2008 reaction high is significantly higher than the relative reaction highs of other indices -- so there is plenty of upside room for small caps to move.
Breadth indicators are pushing beyond bearish divergences - particularly for the S&P. Despite this, there isn't a whole lot of room for maneuver in these indicators as each is heavily overbought.
I think next week will see the first is a series of down weeks to take some of the pressure off the market.
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The Nasdaq too is not short on long side opportunity although volume was down. Note new MACD trigger 'buy'
The Nasdaq 100 is the closest to resistance; only 45 odd points before it gets to the first of the 2008 reaction highs at 1,978; memories of the credit crunch far behind! Note too it enjoyed a new MACD trigger 'buy'. Keep an eye on this index next week - what goes here will likely play out for the Nasdaq and S&P. The Russell 2000 is not in the game simply because its comparable 2008 reaction high is significantly higher than the relative reaction highs of other indices -- so there is plenty of upside room for small caps to move.
Breadth indicators are pushing beyond bearish divergences - particularly for the S&P. Despite this, there isn't a whole lot of room for maneuver in these indicators as each is heavily overbought.
I think next week will see the first is a series of down weeks to take some of the pressure off the market.
Follow Me on Twitter
Build a Trading Strategy in Zignals; Read how and earn real money (once out of Beta) in this PDF.
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 or the Zignals Trading Strategy MarketPlace.
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.
JOIN US TODAY - IT'S FREE!
