Sunday, November 21, 2010

Weekly Market Commentary: Market Top

Weekly charts across indices continue to shape a market top. Technicals for the Nasdaq peaked at historical resistance with the bull trap still in play.



Nasdaq Breadth also honored resistance. The Nasdaq Summation Index dropped sharply from resistance



And the Percentage of Nasdaq stocks above the 50-day MA has confirmed its bull trap.



The S&P tells a similar bull trap story to the Nasdaq with overbought (and weakening) technicals



S&P Breadth indicators failed to make it to resistance for Summation or Bullish Percent indices. Plus, the Percentage of S&P stocks above the 50-day MA has played to a picture perfect top.



So, the late bullish flourish late last week on the dailies hasn't turned the page on the weeklies. Bears hold control of the main trend.

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