A weak Friday wasn't enough to break the trading range. What has this week in store for traders? Anthony Caldaro of Objectiveelliotwave.com opens up with a 60-min S&P chart which has a 4 wave move mapped, suggesting a new high is in the making. A weekly chart gives the case for a probable five wave rally in the Nasdaq - in wave 3 currently. Yong Pan of Cobrasmarketview shows a mix of signals over the intermediate time frame and a distinctly neutral short term picture Bearish divergence in the NYMO Other hot-and-heavy indicators: $CPC and $CPCE A mechanical trading strategy for the SPY Joe Reed starts with the summary of last week New 'sell' signal due for the NASI? Note Full Stochastics Again, note stochastics in the dollar - not quite the bottom? Richard Lehman of Trendchannelmagic.com notes the momentum shift to bears. 1/17 -- Friday's decline does not appear to offer the bears a fall-off-the-cliff scenario, but it does change momentum considerably. In fact

Markets are trading at momentum extremes with weak MACDs, similar to the situation for late spring/early summer 2007. Back then it wasn't until the end of 2007 that the first cracks appeared in the rally and in 2008 when things really hit the fan. So while the market is certainly hot at the moment, it may offer nothing more than a sharp reversal lasting a few weeks before the rally resumes - and new highs made. For the S&P, the strong buy from April 3rd 2009 is still in play, with only a couple of weak profit-taking signals as shown by the orange arrows. The Nasdaq 100 has only shown one weak profit-take signal and remains on course to test 1,978 However, the sentiment behind the weak profit-take signals favours the 'sell' side - eventhough markets have added another 10% since the switch But the flip-side is the overly sensitive nature of market breadth and sentiment reversals. Many of the breadth indicators, like the Percentage of Nasdaq Stocks above the 50-day MA, gav

Yesterday's bounce followed through without challenging prior highs. Volume was lower suggesting a level of reluctance to bid the market to new highs. Nasdaq technicals were unchanged, reflecting the general quiet action. The Dow was somewhat unique in it chalked a new closing high, even if the gain at the end was only 0.3% The index to watch on Friday is the semiconductor index; it finished with an inside day of an inside day. This coiling action at the 20-day MA sets up the 'tension' for a sizable move and potentially a gap move for Friday - the direction of the move is not assured but a move down has probably the edge. If the semiconductors take another step down it will heap further pressure on the rallies of the Nasdaq and Nasdaq 100. But it hasn't happened yet. Dr. Declan Fallon, Senior Market Technician for Zignals.com , offers a range of stock trading strategies for global markets under the user id: ‘Fallond’, ‘ETFTrader’ and ‘Z_Strategy’ available through the

It was a picture perfect bounce off the 20-day MA for the Nasdaq as relative strength to the S&P swung one way then the next, so no real winner yet. Yesterday's OBV bearish crossover reversed but a couple of mild sell-offs over the next few days will likely be enough to re-instate the 'sell' trigger. Small Caps got a healthy bounce off support and any follow through tomorrow will have shorts running for cover once more Semiconductors recovered some ground at their 20-day MA but bears will be stronger on the return to 370 as startled buyers from the past few days look to exit at breakeven. If money rotation continues towards Large Caps then the rally in the S&P will be slow to reverse. Further evidence for a shift away from Tech comes from a sharp reversal in the Percentage of Nasdaq Stocks above the 50-day MA at resistance (75%) although supporting technicals have yet to follow No given index has stumbled yet, but the likelihood is for weakness to hit the Nasdaq and

Significant volume selling reversed Friday's push higher and brought the indices closer to their 20-day MAs. There was some technical weakness with the MACD trigger 'sell's for the MACD and on-balance-volume; plus a shift in relative strength to less risky large caps (S&P) Nasdaq 100 also flashed a MACD trigger 'sell' Small Caps retained their breakout and market leadership role But semiconductors followed through on Monday's sell triggers and cut its 20-day MA. Large losses like the one today have a habit of backtesting the prior high, but it looks like the semiconductors are not going to be contribute to the support of rallies in the Nasdaq and Nasdaq 100 for the next couple of weeks at least. Can the 20-day MAs lend themselves to support once more? SOX action suggests not, but tomorrow will be interesting. Dr. Declan Fallon, Senior Market Technician for Zignals.com , offers a range of stock trading strategies for global markets under the user id: ‘Fallo

Other than a crazy price spike in the S&P it was a day of minor gains for large caps and small losses for Tech. Given the price error in the S&P, looking at the Dow it appears ready to melt higher (again) - as may the S&P. The semiconductor index issued a turned MACD trigger 'sell' following from an earlier CCI 'sell'. The VIX pushes deeper into the teens and is looking overstretched to the downside - beware the snap. Dr. Declan Fallon, Senior Market Technician for Zignals.com , offers a range of stock trading strategies for global markets under the user id: ‘Fallond’, ‘ETFTrader’ and ‘Z_Strategy’ available through the latest rich internet application for finance, the Zignals Dashboard ; many are ranked in the top-20 for 3-month and YTD performance. Zignals offers a full suite of financial services including price and fundamental stock alerts , stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock list wat

Bulls have kicked off January in bright fashion which should be a bright omen for the rest of the year if the January-effect plays out (although CXO Advisory nixes the idea you might make money from it). The S&P has pushed past the 50% retracement and is ready to challenge the 62% level and reaction hi/lo support c1,222. The Nasdaq has shown little signs of slowing its advance. It looks set to challenge 2,465 As the Nasdaq 100 leads indices higher With the Russell 2000 breaking declining resistance: The Percentage of Nasdaq Stocks above the 50-day MA is up against declining resistance at overbought levels - but this was the story for most of 2009 without the expectant collapse in equity prices; the confirmed 'sell' in early July would have banked little if you went on the prior confirmed 'buy' in late 2008. So take it with a pinch of salt. There was a 'weak buy' two weeks ago. The Summation Index triggered its 'weak buy' signal with room to resist