Saturday, August 04, 2012

Weekly Market Commentary: Indices Finish Near Week Highs

Friday's rally managed to reclaim the losses from the first part of the week, but the rally didn't clear resistance. Ironically, breadth weakened despite gains in parent indices.

The Percentage of Nasdaq Stocks above their 50-day MA drifted down to 52% and is just about holding bullish territory.  Technicals are net bullish.

The Nasdaq Bullish Percents finished with a small loss and haven't changed much since the Nasdaq swing low of June.  Technicals remain firmly in the net bearish camp.

Nasdaq Summation Index was also lower. But technicals just about hold bullish territory.

While breadth weakened, the Nasdaq kept above 2,890 support.  How long it can do so with breadth weakening remains to be seen.

The S&P continued to hug former channel support turned resistance as it eats into its bull trap.  Volume was down on last week which may say more about quiet summer trading rather than general disinterest on the part of buyers.

The Russel 2000 remained in No-mans land.

Will Monday see bears re-assert their authority?


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Dr. Declan Fallon is the Senior Market Technician and Community Director for 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.

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