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Bulls will have been following the gains in the Nasdaq and Nasdaq 100 with great pleasure, even the Dow managed a piece of the bullish action in recent days. However, Dow Theorists will be concerned by the lack of participation from the Transport Index. If ever there was a trading no-mans land the Transports are in it. It would take a sustained gain for the Transports to generate a "Golden Cross" and it's hard to see this happening as broader indices struggle to challenge June highs. Bulls can take some comfort from a potential ascending triangle but should the index fall back from its 200-day MA and test its support there isn't much wiggle room should support break. A 50% trim of the March-June rally could see this challenge 2,800s (or the early April reaction low). 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 early collapse in the market had worrying tones but there was no follow through even if volume registered as distribution. The Dow has the greatest interest simply because it's in a support battle at the 50-day and 200-day MAs. The other index to watch is the semiconductor index; the second indecisive doji after the 'shooting star' with the 20-day MA overhead is suggesting further gains are looking more and more unlikely. It's still holding the 50-day MA but I am liking a test of the 200-day MA before a run on June highs is attempted. In defense of the markets I thought it was going to be a whole lot worse. 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 recent rally has put a little bit of fire into breadth's belly. However, not all breadth indicators took the bait. The Nasdaq Bullish Percents is best placed with the bullish cross of the 5-day EMA as the Ultimate Oscillator worked a 'buy' signal from oversold conditions. Whether this evolves into a bull trap or a genuine 'buy' signal remains to be seen but it's a positive at least (and is still a good 5 points away from traditional bull market overbought levels). I was surprised not to see a stronger technical response for the Percentage of Stocks above the 50-day MA. Given we are near the highs of June the indicator shows 30% fewer stocks trading above this key moving average than back at the start of May when it peaked. This is a bad omen and a potential low risk short using June highs as a stop. Buyer beware...(again) Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager

Old news for every other index which are well over their respective 200-day MAs but the Dow managed to fight back to close over its. It's very close to a "Golden Cross" of its own. Other indices finished neutral with former support playing as resistance; the Russell 2000 been a prime example It's hard to read too much into typical summer trading. May/June lows are the best line in the sand if you are a bull. No confirmed reason to sell but hard to be a buyer. Enter to win the Trader's Business Plan prize of a free psych test and free access to the trading plan development program. Retail value $398 [1] Register at Zignals . [2] Go to Charts and select a stock (you will be prompted to download Microsoft Silverlight) [3] Click on the YourCall Icon [4] Enter a Call by giving a stop and target price; make sure the Time Period is set to Short (month) [5] Enter as many calls as you like up until the end of June; these can be long or short signals [6] Send me your Zi

Will the markets break? Another week where early week weakness was reversed. What had the stockchart.com ers to say about it all? Anthony Caldaro of the Elliott Wave lives on has labelled a '1' / '2' of a new 5-wave down. '2' for the S&P is just over 930. It's an alternate count to his original ABC correction (which is still labelled) but it's worth keeping track of. Richard Lehman has gone with new short term upchannels - but sees the broader downtrend taking control over the next few days. 6/27 -- Laggards like financials (XLF) and China shares(FXI)have now finally broken into new upward blue mini channels, joining the others. The small caps have had the greater pop upward, but all the indexes are showing this pop to be narrow and somewhat steep, suggesting a brief life. I am still expecting that they will peak out with a few days at levels below the highs of June 11th, forming peaks that will determine the angle of the larger descending channe

On a week-to-week basis there wasn't much going down for the indices. The Nasdaq was able to make a positive backtest of 1,759 support, finishing the week a couple points shy of its high. The Russell 2000 lost weekly support of 517 (just); although the doji may be seen as bullish it must be countered by the neutral long term and overbought short term momentum. The Percentage of Stocks above the 50-day MA for both the Nasdaq and S&P collapsed; fewer stocks holding the rally mean it won't last forever. Without broader participation the rally has the same chance of success as the 2006 divergence brought about in 2007. It should be added the technicals for the Percentage of S&P stocks above the 50-day MA switched negative to 'sell'. The longer divergences play between parent indices and supporting breadth the likelihood the next move down will be swift and hard. Based on some of my earlier analysis a big move down sounds too expected by the market - and therefore u