A day of divergences where money shifted from Tech to Large Caps. Both the Nasdaq and Nasdaq 100 finished with bearish Hanging Man candlesticks with sizable volume reflecting the churn. However, it was the sharp shift in relative strength in favour of the S&P which is of greater concern for this rally. The Russell 2000 acted in the middle and retains its overall leadership of the market. It still has room to get to 515 resistance or the 200-day MA. As a final note the MACD of the Nasdaq Summation Index is on a 'Sell' Trigger. 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 S&P Bullish Percent has reached the reaction high resistance from the start of the year. This follows the break of resistance in the Summation Index and Percentage of Stocks above 50-day MA. Even the former lagging Percentage of Stocks above the 200-day MA has reached resistance from last August highs: All very healthy for the long term even if the short term this has been thin air for the best part of a month. The "Death Cross" between the 50-day and 200-day MAs of the VIX shows a long term shift towards low volatility; even if in relative terms @33 it is near the upper range of volatility for a bull market but well below the lows of a bear market. Having said that, the cyclical bear market has at least a year left in the tank but the worst looks behind us. But the secular bear still has a cyclical bull and bear market ahead of it; the next cyclical bear market will probably come on the back of all the inflation the current stimulus will generate. Gold Bugs are a be

Each time the market looks ready to take a punt downwards it surprises and recovers early losses. The Nasdaq held above the 200-day MA on what could be a bearish harami doji but I would take the latter with a huge grain of salt. Volume ranked as distribution but the loss was not as big as had initially looked. Technicals remain firm. The Nasdaq 100 didn't show any distribution As a side note, the monthly VIX has the looks a bullish wedge; will we have a rocky summer? This article from TheBigPicture suggests otherwise. 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.

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This rally just keeps chugging along. The bearish black candlesticks of two days ago in the Nasdaq has been negated and was combined with a break of the 200-day MA. The Dow also made decent inroads towards its 200-day MA as it pulled away from former declining resistance. However, volume to the upside was very light. The Nasdaq 100 managed a new reaction high in on-balance-volume as the index pulled away from its 200-day MA The semiconductor index posted sizable gains as it continued to drive past its 200-day MA. The fresh MACD trigger 'buy' adds to the bulls cause although the CCI is heavily overbought (surprise surprise!). Leadership from semiconductors will be very important in the next bull market. 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.

An interesting week. The Nasdaq fell 6 points shy of the 2004 reaction low and is rich in the short term. However, long term stochastics have yet to cross the mid-line so this particular rally isn't done yet. Also working in its favour is the push towards 2006 reaction lows for the Nasdaq 100 - the Nasdaq 100 having surpassed its 2004 reaction low some weeks ago. The Nasdaq Bullish Percent Index is a few points from the bull market reversal zone. Suffice to say, technicals are heavily overbought. Especially the Percentage of Nasdaq stocks above the 50-day MA; this is well above 5-year highs The NYSE is showing similar extremes; below is the Summation Index: Although the S&P has only just reached bear market resistance in its Bullish Percent Index; Large Caps aren't out of the woods the same way Tech has managed over the past weeks. Tech markets are looking rosy, even if in the short term it would be hard to be a buyer. Large caps will eventually be dragged up but the Bullis

My Scratchback links have seen some activity now that my blog is hitting the 15,000 page views a month thanks to the support of Finviz.com . The two most recent purchases were by Chris of Big Moving Stock and Justin of Penny Stock Picks . The $25 payments are allocated to KIVA projects, bringing the total number of projects supported to 107 . If you would like to help you should purchase a Scratchback link to my site today. The two projects to be funded were a tutor in Lebanon and a couple in Cambodia to help send one of their kids to school. 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.