Weekly Market Commentary: Oversold But Not Oversold Enough...
Markets took another step down. Volume dropped from the prior week, as Nasdaq, S&P and Russell 2000 stochastics reached the oversold mark. However, the week failed to end with a bullish candlestick, so there isn't a strong case for a market bottom (at least on the weekly time frame).
With the loss of 2,535 the next level to aim for is a thick band of support at 2,125. The coming week may see this edge a little closer - very little for bulls here.
Nasdaq:
via StockCharts.com
The Nasdaq 100 is also stuck in a bit of a no-mans land, although it still 'bear trap' if it was to close the week above 2,130.
Nasdaq 100 Index ($NDX)
via StockCharts.com
The Nasdaq Bullish Percents saw a modest loss on the week, but the gap is glaring.
Nasdaq Composite Bullish Percent Index ($BPCOMPQ)
via StockCharts.com
The Percentage of Nasdaq Stocks above the 50-day MA lingers below 10% for a second week. Shades of 2008 bottom - which wasn't the true market bottom.
Nasdaq Percent of Stocks Above 50 Day Moving Average ($NAA50R)
via StockCharts.com
Small Caps remain in disarray. Caught between 760 resistance and 595 support. A test of 595 looks the more likely outcome.
Russell 2000 Small Cap Index ($RUT)
via StockCharts.com
While the S&P is looking towards 1,010.
S&P 500 Large Cap Index ($SPX)
via StockCharts.com
For next week, look for more early week selling. The challenge comes in the latter part of the week to see if bulls can recover any incurred losses. Until buyers make a show there is little to get excited about here.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Zignals Trading Strategy Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.
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With the loss of 2,535 the next level to aim for is a thick band of support at 2,125. The coming week may see this edge a little closer - very little for bulls here.
Nasdaq:
via StockCharts.com
The Nasdaq 100 is also stuck in a bit of a no-mans land, although it still 'bear trap' if it was to close the week above 2,130.
Nasdaq 100 Index ($NDX)
via StockCharts.com
The Nasdaq Bullish Percents saw a modest loss on the week, but the gap is glaring.
Nasdaq Composite Bullish Percent Index ($BPCOMPQ)
via StockCharts.com
The Percentage of Nasdaq Stocks above the 50-day MA lingers below 10% for a second week. Shades of 2008 bottom - which wasn't the true market bottom.
Nasdaq Percent of Stocks Above 50 Day Moving Average ($NAA50R)
via StockCharts.com
Small Caps remain in disarray. Caught between 760 resistance and 595 support. A test of 595 looks the more likely outcome.
Russell 2000 Small Cap Index ($RUT)
via StockCharts.com
While the S&P is looking towards 1,010.
S&P 500 Large Cap Index ($SPX)
via StockCharts.com
For next week, look for more early week selling. The challenge comes in the latter part of the week to see if bulls can recover any incurred losses. Until buyers make a show there is little to get excited about here.
Follow Me on Twitter
Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Zignals Trading Strategy Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.
Zignals offers a full suite of FREE 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.
You can read what others are saying about Zignals on Investimonials.com.
JOIN US TODAY - IT'S FREE!
