Higher volume selling returned with a 'Hanging Man' on the Nasdaq, but action says more of a consolidation than any nature of a blowoff top. Technicals point towards modest weakness with a developing bearish divergence in the MACD but countered by strongly overbought stochastics. The Dow is interesting in three doji were followed by another indecisive spinning top, but volume was well below average - barely registering 1 billions shares; presumably the reshuffle in the components accounted for much of this. The Russell 2000 held its breakout without threatening to move one way or the other. A 'sell' trigger did emerge in its CCI which may move in favour of a breakout failure but it's not supported (so far) by other technicals. One point of interest from breadth indicators is the struggle from the Nasdaq Bullish Percents to register a firm MACD trigger 'buy' following its recent advance. While the Percentage of Nasdaq Stocks Above the 50-day MA is suggesting

The semiconductors were the days winner as the early June bull trap converted into a new consolidation handle; all part of the March-June rally. Also adding to the bulls cause was a break of the bearish divergence in the MACD, a negated 'sell' trigger from the CCI and a switch in relative strength back in favour of semiconductors over the Nasdaq 100. The net effect of this was to reduce the risk of a downward break in both the Nasdaq and Nasdaq 100 as was initially feared when the bull trap emerged in the semiconductors. Both aforementioned indices were able to make modest gains on higher volume. As I had commented in my Zignals blog post yesterday it is looking more probable we won't be seeing a significant downleg emerge - or at least a downleg which undercuts the May lows to any significant degree. Onwards and upwards? Want to win the Trader's Business Plan prize? [1] Register at Zignals . [2] Go to Charts and select a stock (you will be prompted to download Micro

A late day rally reversed the bulk of Monday's losses which turned what was a looking a decent day for bears into something more neutral. The Nasdaq and Nasdaq 100 maintained their healthy form staying well above their respective 20-day, 50-day and 200-day MAs. The Nasdaq enjoyed a "Golden Cross" between its 50-day and 200-day MAs; a long term bullish signal. This followed a similar cross for the Nasdaq 100 at the end of May. The semiconductor index also has a "Golden Cross" working in its favour but has a 'Bull Trap' and a bearish divergence in its MACD trigger line pressuring the bulls. In terms of market breadth there was a mixed signal from the Percentage of Nasdaq stocks above their 50-day MA. On the bull front was a MACD trigger 'buy' above the bullish zero line but a bearish divergence between the breadth indicator and the Nasdaq itself. So - will tomorrow break the impasse? Want to win the Trader's Business Plan prize? [1] Register

The rally keeps chugging along and now looks better positioned to move higher than lower - but the initial outlook for Monday is for weakness. Tomas Leszczynski headed the list of Santoren.com , but most of his front page charts were of stocks. His daily S&P chart shows a second long signal which may define the resistance level to break from the next pullback. I still like the idea of a move back to the low 800s (perhaps high 700s) but exact mirrors of prior bottoms are rare so it may do nothing more than make a modest pullback into the high 800s. Yong Pan showed a mix bag of signals of Cobrasmarketview ; nothing convincing either way. SPY's on a full stochastic 'sell' at overbought levels; the last one brought 4 days of weakness from 5 subsequent trading days. Doubts = long confirmation? Weekly resistance says otherwise: 30-min working off rising channel support; third touch is support confirmation Richard Crockett of StockTiger shows gold miners on a confirmed Ren

The weekly charts showed some interesting changes, particularly in the Nasdaq and Nasdaq 100, both of which gapped through major resistance. The Nasdaq is on course to challenge the next level of resistance at 2,010. Better news came from the Nasdaq 100 which surpassed 2006 reaction lows and is on the way to 2008 reaction lows c1,702. The Russell 2000 also pierced resistance of 2004 reaction lows and may go on to test former (bearish) head-and-shoulder support turned resistance. Of breadth indicators only the Bullish Percents closed the week at new highs and prior bull market reversals usually don't kick in until the 70s - maybe there is another couple of weeks of gains to come? So - it's looking good again for bulls and the aforementioned resistance levels which are now support should be good places for GTC buy orders or stop orders on breaks. Want to win the Trader's Business Plan prize? [1] Register at Zignals . [2] Go to Charts and select a stock (you will be prompted

Trading Academy is a resource for the day trader in Stocks, FX, Options and Futures. The site offers a wide range of free courses streamed online covering Risk Management and Technical Analysis. An additional video looked at the Nasdaq TotalView. A Financial Education Center is accessed from a link sent following registration. In order to view the videos you need to provide contact details including your email and contact number. There is too much emphasis placed on providing contact details for each component which gets tiresome; the site should employ a single registration to access free material. A Lessons from the Pros section offers the following: Lessons from the Pros are powerful trading concepts that you can use right now! Informative articles covering all aspects of short term trading, from charting, technical analysis, shorting, tax ramifications, and much more! Each week we will send you cutting edge information provided by experienced traders, faculty members, and outside

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