It was a day where bulls were expecting the bears at the party, but the bears never showed so they took over and partied late into the night (or afternoon...). The returns were modest but important was not losing yesterday's gains. On a chart none of it looked like much. One thing I hadn't quoted yesterday was the MACD trigger 'buy' in the Russell 2000 - the current market leader But there was one worrying sign in the semiconductor index; a shooting star reversal at former channel support turned resistance. A CCI 'sell' trigger adds to the probability for a larger downward move One significant positive was the net bullish supporting technicals in the Percentage of Nasdaq stocks above the 50-day MA: Can other breadth indicators follow suit? Might see a little weakness on expiration Friday. Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts , stock charts , watchlist, multi-currency portfolio manager and strategy builder website. Fore...

After two days of quiet trading markets perked up on heavier volume, closing at their highs. There was also some technical improvement with a MACD trigger 'buy' for the Nasdaq - although it continues to underperform against the S&P. The Nasdaq 100 also enjoyed a MACD trigger 'buy' on accumulation: The Dow is again bumping against upper channel resistance. However, any break would produce an unsustainable run given the angle. But the rally in the S&P is looking very healthy: With today's gains the last attempt by bears to break the run in September is now history. 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.

Another day, another doji for the markets. You could more or less copy-and-paste yesterday's comments for today. There were only two points of interest. First was the positive test of the 20-day MA in the Russell 2000 Second was the MACD trigger 'buy' for the SOX. However the index finished below resistance. On the breadth front there was a bullish cross of the 5-day EMA for the Bullish Percents. With the VXN toying once more with long term support We'll see how it will all mix up down the road. 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.

Breaking to new highs was a step too far for some of the indices after prior five days worth of gains. But the days' indecision was not accompanied by heavier volume churn so it would appear to play more towards a consolidation than a reversal point. However, a gap down tomorrow would give bears something to work with. The Nasdaq looks ready to repeat a mid-August like retracement; the October reaction low - and/or 50-day MA - will be critical for bulls to defend if Tuesday opens on weakness (in order to maintain the sequence of higher highs and higher lows). MACD trigger line inching towards a 'buy' trigger. The Dow was an exception in it was able to make a new higher high with a MACD trigger 'buy' and bullish cross for on-balance-volume: The semiconductor index crept over former channel support but closed on the line. It looks the most vulnerable to an Evening Star candle line. Tomorrow will likely see some follow through downside but it will be the volume that ac...

Another excellent week for bulls with bears felling the force of momentum against them. Anthony Caldaro of Objectiveelliotwave.com looks to have backed down on his bearish 'ABC' count and has taken a more bullish (?) new 5-wave trending phase - wave 2 of 5 about to develop? Yong Pan of Cobrasmarketview has more bearish than bullish signals for both short and intermediate term, but nothing unusual with this in recent months But, in the following chart there is still a confirmed trendline break - even with 5 days of gains. Same broken trendline going back to March And another resistance line here However - lovely bullish cup-and-handle breakout on the 5-min SPY: Richard Lehman has markets pointing upwards once more with the October meltdown unlikely to be significant (if occurring at all!) 10/11 -- The hourly charts are rather clear now in showing the recent uptrend. This removes the scenario of a repeat of the 10% June-July correction -- at least for now. In the longer pict...

The frustration continued for bears as new weekly highs diverged to supporting technicals. For the S&P and Russell 2000 this also meant resistance was a lingering issue. Divergences remain but there is at least a breakout in play for the Nasdaq The Percentage of Nasdaq Stocks above the 50-day MA is behaving very much like it did at the start of 2007 - not a good omen over the long term but bullish enough for the near term: The NYSE Summation index also went with a stochastic 'sell' break. Is this a case of once bitten, twice shy? The indices are setting up in a way very similar to 2007. On the plus side, the current rally could last well into 2010; on the down side, the next move down could be substantial. But whatever happens, a repeat of 2008 is unlikely - so the next move down could be slow and painful. Whatever happens, it's hard to be a buyer at these levels, but shorting remains a losers game (me included!). Dr. Declan Fallon, Senior Market Technician, Zignals.com...

Favourable jobs data took indices out of their downward channels, but the morning gaps didn't generate a great deal of follow through - although volume did climb to register an accumulation day. For the Nasdaq, technicals were relatively unchanged and the day closed with a shooting star (but given stochastics are not overbought it's not a strong bearish candleline). Small Caps struggled to reclaim former channel support although a new - slower - channel looks to be in play. Note the struggle at the 20-day MA. The semiconductor index is struggling even more But even with these struggles bulls are back in the ascension. Can markets make new highs? And will Semiconductors join the fun? 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.