The McCellan Oscillators for the Nasdaq and NYSE told two stories. The first was the confirmed break and 'sell' trigger for the Nasdaq. The same 'sell' was issued in the NYSE McClellan Oscillator but this was not confirmed with a trendline break in the NYSE. Trail those stops. So even as broad markets rally there is still an underlying shift from speculative technology stocks to the more staid Large Caps. 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.

Major market gains and breaks through important moving averages had all the look of a great day for the indices but volume was very light relative to the gains. The Nasdaq was able to make it past its 20-day and 200-day MA but it remains questionable as to whether it can go on to make new highs given its weak relative performance to Large Caps. The Dow was at least able to find support at the 20-day MA and has room to maneuver to its 200-day MA. With the sector rotation to safety from speculative indices it could go on to make new highs. The SOX was unfortunate in it broke through the 200-day MA but stalled at the 20-day MA. I'm not optimistic on this rally lasting but it has been fooling everyone for a good month now and could continue to surprise. 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.

Markets took their turn for the worse after weeks of waiting. How will it all end? Tomas Leszczynski of Santoren Wealth Management made a great call with arc resistance: Projected target for a pullback and the chance to create a reversal head-and-shoulder pattern at November reaction lows. Presumably broad bands provide less resistance than tight bands (as was the case in June 2008). Measured move (with some wiggle room) played out on the Nasdaq? Potential for a painful fall in the QQQQs: Peter of CobrasMarketView is showing neutral short term signals but a swathe of bearish intermediate time frame signals. SPYs primed for a measured move down? Confirmed breadth weakness: Bear market reversal soon to be confirmed on weekly? 'Sell' signal also in the ratio of consumer discretionary to staples: Richard Crockett of StockTiger is showing a Gold Miner 'sell' on the Renko chart: Dow monthly tag of 200-day EMA resistance: Simple demarcation: Anthony Caldaro of Elliot Wa

The week finished lower as resistance held for the Nasdaq (2004 reaction lows) Russell 2000 (2004 reaction lows) and Nasdaq 100 (2006 reaction lows) Breadth indicators reversed to their first down week in eight weeks; see Nasdaq Bullish Percents: Percentage of Stocks above the 50-day MA Or the Summation Index: The same was true for S&P breadth. All-in-all we have a clear weekly 'sell' signal 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.

It has been a tough last few days; the strong push through the 200-day MA gave way to 5-days of sharp declines - declines which pushed it below 200-day and 20-day MAs and into the clutches of the 50-day MA. Technicals are a mixed bag. The MACD is in the early phase of a decline but the CCI has swung to a 'buy' signal (unconvincing though it looks). Stochastics are similarly mixed with a 'sell' on the intermediate time frame but oversold on the short term. Add in the underperformance to the Nasdaq 100 with weakening trend (bull or bear) probably means this is going to drift along until bulls get their act together to break what is now 270 resistance. Until then, don't expect any miracles from it or by association the Nasdaq and Nasdaq 100. 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.

It had to happen eventually but the 20-day MA broke as support for the Nasdaq as technical weakness magnified. The next port of call is the 50-day MA. The Dow dropped back to its 20-day MA so at least bulls have something to defend. The Nasdaq 100 suffered a significant gap down and looks set to add to its weakness But hardest hit were Small Caps. Technical weakness intensified as it started to underperform Tech; markets are left aligned in their most bearish formation { Large Caps > Tech > Small Caps } 50-day MAs are next on the menu 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 NYSE Summation Index is the only breadth indicator currently supporting the rally. Even if the market was to continue down it would take 2-3 days for it to switch it to a 'Sell'. The S&P Bullish Percents, Percentage of Stocks above 50-day MA and Percentage of Stocks above 200-day MA have all crossed below their 5-day EMAs. The chief driver of this rally from a breadth perspective has been the Percentage of Stocks above the 200-day MA, but now it has run into resistance and looks done in the short term. The good news is that the breadth picture has changed. The bearish trend in place since 2006 has been broken. Now it's just a matter of time turning the positive developments in breadth into a sustainable, long term, rally. But in the short term it is looking a clear 'Sell'. 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 availabl