The McClellan Oscillators held their bullish form as bulls stepped in, with volume, to stall 3-days of declines. At least on a closing basis (ignoring the intraday range) both the Nasdaq and NYSE are on course for a double bottom; confirmation will come on a closing break of 2,400 for the Nasdaq and 9,250 for the NYSE. Dow Theorists will take comfort in the strength of the Dow Transports. Note how bulls maintained control as other markets reversed from their late January bounce [+DI > -DI; ADX > 20]. Stochastics are overbought which suggests a pullback to test the 50-day MA is needed to shake out the last of the weak hands. Volume in this index has certainly sided with the bulls. Volatility watchers are unlikely to see another spike into the high 30's on this decline, and those waiting for a second spike before buying are likely to be disappointed. A push back to the 200-day MA would look to be the most likely scenario. Nasdaq theorists will look for the semiconductors to ...

Wednesday's selling - the third day of selling in a row - has started to pressurize the Bullish Percents and the validity of the January bottom. The Nasdaq bottom remains healthy and looks to be part of a bullish retest of prior lows. The Dow Bullish Percents have breached their 5-day EMA (bearish), but remain in deep oversold territory. More worrying is a similar breach of the 5-day EMA for the S&P Bullish Percents, but unlike the Dow, the crossover occurred away from oversold levels. Watch for the S&P to lead a break to the downside and through January lows. Both Nasdaq and NYSE McClellan Oscillators finished in positive territory which is bullish (just!).

I was trying to remember which blogger had talked about the McClellan Oscillator but couldn't find the reference post (Sorry!). This is an indicator which I had overlooked in the past, but is another useful tool (if a little whipsawy). The crossover in the zero line gives an indication of bullish/bearish strength in the market - although given the whipsaw one should perhaps wait for confirmation on a move past +/-10. After Tuesday's selling both the Nasdaq and NYSE Oscillators are (holding) bullish - but another day of selling might change that. Of the market internals I do follow, the Percentage of Stocks Above the 50-day MA started to crack (it is usually the first to do so). However, the bullish divergence in its MACD holds with an overall technical picture which is net bullish. The other market internals; Bullish Percents and McClellan Summation indices, still support the January bottom. The S&P is doing its best to map out what I thought would happen over the coming w...

Some big monthly traffic figures reported from the likes of Big Picture (Visits: 1.1M Pageviews: 1.4M) and Chris Perruna (Visits: 34K, Pageviews: 65K). TraderMike (Visits: 100K, Pageviews: 180K) also enjoyed a strong January. Happy enough with my own spike in January (Visits: 4K, Pageviews: 6K) - even if it is well off the leading blogs. Featured links on TraderMike 's and Maoxian 's sites helped contribute to the increase. Ideally, I would like to be up to 10K in Monthly visits by the end of year (we all have to start somewhere!).

Advanced Battery ( GBT ) has traded itself into a tight range, bound by its 200-day MA and 20-day/50-day MAs. The suggested play is to buy a break of the latter averages (c$4.33) with a stop on a break of its 200-day MA ($4.02). Technicals have flattened and don't give an immediate 'tell' as to which way the stock will go, but this flattening also precedes sharp moves. A break of the 200-day MA could see a retest of November lows at $3.26 (an alternative short play?). The most recent news was the $23m contract to make electric batteries for bicycles and motorcycles which saw the stock jump to $4.65; so if you like that news you should like it more here! If anyone is willing to trade these picks (and others) in the Stock Exchange game (linked below the chart) let me know. I will give such participants free membership to this site on the condition they trade only the stocks I provide. Trade my Stock Picks at

Star Scientific ( STSI ) has little in the way of news to drive price action, but the stock is nicely placed following Friday's positive test of Support. The stock featured to Subscribers for January 15th [ $ ] at $1.15 and again for January 25th [ $ ] at $1.49 . January 17th saw a triple top breakout on the point-n-figure chart with a price target of $3.75; a move to the huge red candlestick from early 2007 is a potential upside target. Technicals remain firm with strong gains in the MACD trigger line under steady accumulation by on-balance-volume. Support runs in a band between $1.40-$1.45 - stops can go 1% below this level (or thereabouts). Trade my Stock Picks at

It was a busy week for the markets with the Fed, Google earnings and the little deal of MSFT's. How was this reflected in the markets? Joe Reed has his week in summary: Joe's Nasdaq chart shows the bounce off four year channel support: I hadn't realized Gold ascended as much as it had relative to the decline in the dollar; Joe's chart shows the relationship well: The monthly Dow chart shows a picture perfect test of support Ted noted the change in the semiconductors Feb 1st 3:50P.M. There are now 14 of 19 components of the SOX that have moved to X's. With the volatility chart for the semiconductors showing a (very) bearish target: Maurice has another lengthy weekly commentary review up. My emphasis is in bold: This weeks exciting excursion saw the DJIA up by 4.39 %, the S&P 500 rose 4.87 %, and the NASDAQ climbed 3.75 %. Prices managed to reset the table here, and break above the August lows this week. As we Finally got a Friday closing to the upside as trad...