Weekly Market Commentary: First (Mild) Weaker Weekly Close For 2012
It had to happen at some point, but last week was the first of 2012 to see markets close lower - at least for the Russell 2000. Large Caps and Tech finished the week flat, but in the case of Nasdaq breadth, it was another week of gains.
The Nasdaq Bullish Percents added another couple of points - but has room to travel to resistance.
While the Summation Index is very close to all-time highs (and is doing a very good impression of the rally from the March 2009 low).
These gains in breadth were enough to keep the Nasdaq flat on the week (on lower volume)
Compared to the 2% loss in the Russell 2000
But there was also a flat close for the S&P on the week, also on light volume.
Given the length of the rally, last week's losses on light volume were welcome. So a few more weeks like last will nicely set up the next phase of the rally. But with market breadth close too - if not already - at a point where an extended period of downside is favoured, discretion may be the better side of valor.
In this enviornment, stock breakouts are numerous - but most tend to be false moves.
-----
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 Nasdaq Bullish Percents added another couple of points - but has room to travel to resistance.
While the Summation Index is very close to all-time highs (and is doing a very good impression of the rally from the March 2009 low).
These gains in breadth were enough to keep the Nasdaq flat on the week (on lower volume)
Compared to the 2% loss in the Russell 2000
But there was also a flat close for the S&P on the week, also on light volume.
Given the length of the rally, last week's losses on light volume were welcome. So a few more weeks like last will nicely set up the next phase of the rally. But with market breadth close too - if not already - at a point where an extended period of downside is favoured, discretion may be the better side of valor.
In this enviornment, stock breakouts are numerous - but most tend to be false moves.
-----
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!
