Transports are hurtling at speed ever lower. No immediate sign of support until it reaches the 2001/03 double bottom at 1,942 and 1,918 with closing support around 1,983. Given the rate of decline I would expect an overshoot of these levels. Note how on-balance-volume is very close to its 10-year low while the MACD has been completely routed. Looking at stochastics it would appear oversold based bottoms typically occur with a double bottom in the indicator. The timespan between bottoms can run as long as 6 months; so although a bounce may be favoured over the short term it seems probable there will be another run at the lows this summmer. There will be no economic recovery until the Transports pick up, so keep the hard hat on. Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website

The declines in large cap indices didn't change their already weak positions. The concern was the clear slice of November closing lows in small caps. With technicals weak and only hinting at a divergence it may be a while before we see anything positive here. By tomorrow's open I hope to be able to say something about Breadth. Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website

Not a week for the bottom pickers. What had the Stockcharts to say about it? Yong Pan has noted a consolidation breakdown and target of 646 for the S&P, but short term signals are mostly neutral. VIX still looks remarkably complacent (trading mid-range of its band). Pennant breakdown in the SPY's; target of 65s... But bounce watch in effect for NYADV. Maurice has been playing the SDS . I think SDS will exceed the $99 level early next week and rally up to rising resistance. There I expect a bearish rising wedge will be completed, and ultimately bring about a reversal. So I do think that the S&P 500 will move a bit lower before the bulls attempt another takeover. The monthly damage (eeek!) Intersting bullish wedge for the Dow - but would you be a buyer of support if it was tested? Richard Lehman is waiting for a short term bottom, but sees the long term bottom some way off. 2/28 -- It is clear that the small up move this week represented a slope change in the existing shor

It had looked like last November lows were going to be the lows of the secular bear, but this will not be the case. Volume soared to register a distribution week and the losses have no clear end. The S&P has a measured move target around 555; it seems a long way away but you never know in this market. The Nasdaq hasn't yet breached November lows but it looks inevitable it will. Especially when you see breadth indicators like the Bullish Percents in neutral territory. However, although stochastics have room to fall I don't think the indicator itself will ever get back below 10%. Similar story with the Pecentage of Nasdaq Stocks above the 50-day MA; note neutral stochastics. Don't give up the day job. Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website

Tech took it hardest but the recent lows weren't violated. Large caps escaped relatively unscathed but their long term picture remains poor. The index to watch is small caps. The November closing low of 385 is under threat and will likely see a test tomorrow. If the loses accelerate it will drag tech along with it. Small caps usually play the leadership role so weakness in this index will have far greater consequences than the current large cap meltdown. The malaise continues. Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website

Volume picked up for a fourth day as markets decide which side of the fence they are going to play on. Large caps favour further weakness but Tech Indices are fence sitting; flat-lined moving averages are testament to the indecision. How they break will say much about the health of bulls I have modified the semiconductor chart to show a consolidation triangle in a pattern very similar to small caps. I like where the strength lies in the market - it just needs to show its hand more. Just look the at buying volume in the Semiconductor HOLDRs ( SMH ); sideways market with huge volume spikes (barely a squeak to the downside) is classic Big Money buying. Semiconductors usually show form during the early economic recovery phase. They are not there yet but this action is good. Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website

Bulls made a stand and helped erase the bulk of Monday's losses. Best news comes from breadth indicators where Bullish Percents and the Percentage of Stocks above the 50-day MA are strongly diverging (positively) to price. We may not be seeing much in the way of market breakouts, but there are stocks which appear to be building bases and will be the next leaders. We still haven't seen much action around the 200-day MAs so its still early days. In general, technology looks to be faring better than large caps. Although breadth indicators don't appear to have hit the same support levels as large caps have today - this is a bit of a mixed message; room to fall but performing better. The bullish divergence in the Percentage of Stocks above the 200-day MA has been breached but unlike S&P stocks there is at least a nascent uptrend; so things are improving for technology stocks over the long term. Certainly looks like toe dipping territory. Dr. Declan Fallon, Senior Market Tech