Weekly Market Commentary: Rally Maintained
The S&P traded similar volume the past few weeks, which is a little disappointing given the upside break of the ascending triangle.
The Nasdaq 100 is trading between two reaction highs in 2008; 1,978 support and 2,022 resistance (the move to 2,053 in 2010 was a bull trap). A weekly close above 2,022 brings 2,130 into range.
With respect to Tech breadth the best of the action came in the Percentage of Nasdaq Stocks above the 50-day MA. The breadth indicator cleared the bearish divergence dating back to 2009 - a significant bullish development for the long term.
Bears will be looking to the Percentage of S&P Stocks above the 50-day MA - although July 2009 saw the breadth indicator reach 93% and it was another 6 months before the market topped (as the breadth indicator again reached 93%).
Until proven otherwise this market is a bulls market. Other than a hot looking S&P breadth indicator (Percentage stocks above 50-day MA) there does not appear to be an immediate market top in play. If a top is true, then look to the S&P for leads.
Follow Me on Twitter
Build a Trading Strategy Business in Zignals
Dr. Declan Fallon, Senior Market Technician for Zignals.com, offers a range of stock trading strategies for global markets, also available through the latest rich internet application for finance, the Zignals MarketPortal 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 quote 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!