Markets fought off a copy cat reversal from the January reaction high, closing near the highs as opposed to the day's lows. From a technical perspective the selling didn't reverse any of the recent breaks; chiefly the nudge over declining resistance in the Russell 2000 and the break of Jan/Feb/Mar highs in the Nasdaq 100 The only real point of contention was the nick above November reaction high for the Semiconductors achieved on Friday was reversed. So will Tuesday weaken in line with overbought market breadth, or break convention and push higher? I still favour the former but the afternoon rally was impressive. Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.

Bulls kept the pressure on as the broader picture continues to brighten for them. But the short term is looking increasingly toppy; although it's been like this for almost two weeks... Yong Pan has an interesting mix of neutral, overbought and oversold signals on the short term; maybe there is still something left in the tank for bulls? I agree the % of 50-day MA stocks is looking rich, but others like the Advancers and VIX aren't looking too bearish Resistance fast aproaching for the S&P down channel But resistance continuation breakout from a symmetrical triangle on the SPY 15-min The Accumulation count for the advance from March lows favours the bulls. Tomas Leszczynski 's ribbon analysis points to a first bounce Will the 50% discount be enough to encourage buyers? Interesting use of 20-day EMA's on indicators; whipsaw signals around the mid-line but not bad when EMA crosses occur at 35/65 level; current signal 'long' Daily QQQQ against channel resistan

The strong form for the markets stretched into another week. I was surprised with the positive reaction to the jobs report since it seemed to mark a logical reversal point for the market from a condition of overbought breadth indicators. The S&P followed its break of 808 resistance with a climb above the stochastic 20 line. The Nasdaq saw an upturn in supporting technicals but has yet to mount a serious challenge on 1,641 resistance. The Nasdaq 100 cleared 1,299 resistance with a similar improvement in technicals. But the Percentage of Stocks Above 50-day MA has topped out - an intermediate term down-leg is favored over the coming weeks. However, the bear trend triggered in 2006 for the Summation Index is over I'm still liking a correction in the short term but the long term health of the market has significantly improved. Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy buil

Is this too soon to call? After a brief run of deflation in the latter part of 2008, 2009 brought in a new round of inflation. Bond Prices look to have peaked and oil prices have at least bottomed. The question for oil is whether it hangs around the $40-50 range or starts to shape a new bull trend. If the former then the inflation count goes on hold but irrespective of this the deflation model is no longer true. Certainly Fed and Government action point in favour of inflation. Gold Bugs will be pleased; but there appears to be excess speculation priced into the metal compared to Platinum and to a lesser degree, Silver. Is Gold taking its lead from Oil of 2006/07? Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.

The Nasdaq 100 did enough to clear double bottom neckline resistance on higher volume, setting in place the groundwork for a higher high, higher low up trend. The spanner in the works was the resulting under-performance with respect to small caps - although this is not bearish in itself. Semiconductors are on a second challenge of October highs and are looking more positive for a push to the 200-day MA. Note the new reaction high in the MACD; an uptrend is in play. The relative strength of small caps conflicted against the tagging (but no break) of declining resistance in the index. However, the shift towards small cap leadership reflects a stronger long term bullish environment. Sideline money will be getting antzy for a slice of the action. Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.

The mining sector has seen some solid upside in recent weeks. One of the strongest has been Newmont Mining . Yesterday's push above $46 from a bull-flag (part of a move from $34.62) should be enough to see a test of $53.77 resistance. The bull flag projection could see this move into the $56s. The illustrated head-and-shoulder pattern brings a larger target of $67 but for now I have entered a call for a resistance test with a stop below the lows of the bull flag. You can see this call and stock chart at Zignals ; free registration required. Alternatively, you can set a Zignals Price Alert for a test and/or break of $53.77 in Newmont Mining. Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.

I was expecting a rout but the indices ran against expected form as yesterday's bearish end-of-day finish didn't result in negative follow through. Volume was relatively light for large caps but it was better for the resurgent tech markets; another good sign. Watch for a break of 1,286 in the Nasdaq 100 - the index should fly if it can break with the volume we have been seeing; on-balance-volume likely to breakout first. S&P creating its own cauldron against resistance; can it take its lead from Tech indices? Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.