Much better stuff from the indices; new highs on significantly higher volume. The Nasdaq shows it best with plenty of room to channel resistance. Since July there have been 18 accumulation days and 4 distribution days for this index. MACD also looks set for a 'buy' well above the bullish zero line. The other key strong performer was the Semiconductor index. It had already secured a higher high yesterday (along with a new MACD trigger 'buy' above the bullish zero line) and looks set to break what was a potential resistance level from the bearish wedge. So much for seasonal weakness - but September isn't over yet. 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 first post-Labor day ended up as it started with a gap-and-stall. August highs weren't challenged and while volume was higher (to register an accumulation day) it was still well below what has traded over the summer. The Nasdaq remains nestled in the middle of its rising channel and has room to resistance over and above a break of August highs. Relative strength has swung back in favour of tech stocks over large caps. With small caps leading tech - the most bullish environment for stocks. Better still for small caps was the break of the 20-day MA; something which other indices had managed to do on Friday. The Semiconductors did break with the day's convention and posted a new closing high. An earlier MACD trigger 'sell' was broken to the upside too but wedge resistance remains in play. However, with rising channels dominating indices remain in rally mode. The question is how long ever weakening sentiment can hold indices at current levels without a significant downl

A flourish to the end of week offset some of the damage done earlier during the week. What had the Stockcharter's to say about it? Yong Pan of Cobrasmarketview has a neutral short term trading signal but a bearish intermediate environment - although Friday saw three new bull signals (2 on the short and 1 on the intermediate) and one neutral signal. Thursday and Friday lacked the volume punch to make them strong accumulation days Tuesday may say more Interesting upside targets for the rally; the Monday rally breakdown gap been one possibility In contrast, Richard Lehman has drawn a possible bearish outcome - although the resistance channel lines are under threat of a breakout. In his comments he stated: 9/3 -- A slight bounce finally emerged within the new purple short term downchannels. It would represent a shorting opportunity if it gets up to the upper purple lines, but that may or may not occur quite so perfectly. The main thing to remember is the downtrend itself. Gold seem

Labor day weekend is here but last Thursday's and Friday's action brought the market back from what had looked at the start to be a typical seasonal weak September. The strong finish helped the S&P hold the 1,000 level; the bearish divergence in the MACD held as Stochastics bumped along overbought levels. The Nasdaq is working on clearing the 2,020 resistance level (changed from the previously listed 2,010; 2,020 is more accurate). As with the S&P there is the bearish MACD divergence and heavily overbought stochastics to work from: Sentiment held to bearish form for both Nasdaq and NYSE: It's only a matter of time before weak sentiment catches up with the averages. 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 ticked up with tomorrow's job report to come. Thursday's gains didn't break above any of the indices' 20-day MAs with the exception of the semiconductor index - although there was no technical recovery for the aforementioned index. Volatility looks ready to pop higher having comfortably cleared its 50-day MA. Shaky times ahead for the S&P? The monthly VIX is also showing a bullish wedge; a rocky Q4 ahead? But the first challenge is tomorrow's job report and the post Labor day return of Traders. 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 finished much as they did yesterday on light volume. Neither was there significant technical change in any of the major averages. The only point of note was the new MACD trigger 'sell' for the semiconductor index as it traded around its 20-day MA. A couple of important tests are due for the SOX; rising support connecting March-July lows, 50-day MA, and May-July reaction lows. Of the sentiment indicators there was an reaction break of the August low in the Percentage of Nasdaq Stocks above the 50-day MA - will the Nasdaq to follow suit and break August lows? A similar scenario in May-June of this year failed to confirm so it can only be taken as a warning (the May reaction low for the Nasdaq was never breached even as the Percentage of Nasdaq stocks above the 50-day MA tumbled). Will bulls try and build from today's lack of aggression on the part of bears? The long weekend will probably mean another limp couple days worth of action. Dr. Declan Fallon, Senior Market T

Whether todays' sell off was simply the expectation of a seasonal rough September, or the accumulation of months of topping action is too early to say. Tuesday was a clear distribution day with a wide intraday swing in the markets. The day started like every post-sell off with a rally - a rally which usually holds ground and pushes higher over the course of the week. But today was different, today the rally burned and burned out fast. Anybody with profits to take, particularly for those who bought July lows, will have likely taken some or most of their profits. With the loss of 20-day MAs it may be hard for buyers to come in from the sideline, particularly when most sideline money is likely already in the market. Shorts will now use these 20-day MAs to build a position so more supply can be expected on any advance to these levels. But it's not all doom and gloom. Looking at the broader context of the rising price channels it's clear Tuesday's action is noise in the larg