Weekly Market Commentary: Bad - Could Have Been Worse
Last week's action was a bit of a struggle on the daily frame, but taking it back to a weekly view hasn't changed a whole lot. In fact, next week could push lower without changing the picture a whole lot.
The Russell 2000 tried again to break above 760, but ultimately it finished the week in the middle of its rising channel.
The Dow finished just below 12,000 support, but there is additional support at 11,700 - plus 'bear flag' support.
The Nasdaq is struggling a little below congestion between 2,600 and 2,885 established in the latter part of 2010 and early 2011.
The Nasdaq Summation Index finished the week with a 'bull trap' which suggests more downside for the parent Nasdaq to come. In addition, the Nasdaq Summation Index isn't oversold, so the decline could continue for a number of weeks.
The NYSE Summation Index has already created and confirmed a 'bull trap' and it too has room to run before it becomes oversold.
How this plays out for the S&P with it sitting just above major support at 1,209 remains to be seen?
Next week could be interesting, although heavy trading is unlikely as Christmas approaches. The real trend is unlikely to assert itself until the New Year. As for next week, look for a lower finish.
----
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 Trading Strategy Marketplace 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 strategy and sell it in the MarketPlace to earn real cash.
You can read what others are saying about Zignals on Investimonials.com.
JOIN ZIGNALS TODAY - IT'S FREE!
The Russell 2000 tried again to break above 760, but ultimately it finished the week in the middle of its rising channel.
The Dow finished just below 12,000 support, but there is additional support at 11,700 - plus 'bear flag' support.
The Nasdaq is struggling a little below congestion between 2,600 and 2,885 established in the latter part of 2010 and early 2011.
The Nasdaq Summation Index finished the week with a 'bull trap' which suggests more downside for the parent Nasdaq to come. In addition, the Nasdaq Summation Index isn't oversold, so the decline could continue for a number of weeks.
The NYSE Summation Index has already created and confirmed a 'bull trap' and it too has room to run before it becomes oversold.
How this plays out for the S&P with it sitting just above major support at 1,209 remains to be seen?
Next week could be interesting, although heavy trading is unlikely as Christmas approaches. The real trend is unlikely to assert itself until the New Year. As for next week, look for a lower finish.
----
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 Trading Strategy Marketplace 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 strategy and sell it in the MarketPlace to earn real cash.
You can read what others are saying about Zignals on Investimonials.com.
JOIN ZIGNALS TODAY - IT'S FREE!
