Markets continued their advance as they pushed above 20-day MAs and in some cases, 50-day MAs. The Nasdaq broke through its 20-day MA on slightly lower volume than Friday, but with a MACD trigger 'buy' and OBV 'buy' trigger. The 50-day MA is only a few points overhead but with other indices breaking past 50-day MAs the odds favour the Nasdaq doing the same. The Dow posted a MACD trigger 'buy' as leadership moves away from staid large caps to more speculative tech stocks. The Nasdaq 100 had the distinction of a dual break of 20-day and 50-day MAs - with the MACD trigger 'buy': The Russell 2000 cleared both its 20-day and 50-day MAs and had a MACD trigger 'buy' The only index to struggle a little was the S&P; it barely managed a break of its 20-day MA or trigger a MACD 'buy' So while markets enjoyed across the board strength, after three days of gains its likely we will see markets ease a little with markets looking to their 20-day MAs

It's Presidents day so no trading for Monday. Last week saw some positive action on the dailies - what had the Stockcharters to say: Anthony Caldaro of Objectiveelliottwave hasn't altered the count from the start of a wave 2 higher (for the S&P). Not sure I picked up on this last week, but he has a fourth wave down of a five wave bull run for the weekly Nasdaq Richard Lehman of Trendschannelmagic.com is looking for short term upside to continue - but not for very long. 2/13 -- Except for the Dow, the short term charts have all broken upward through the purple downchannels that began in mid January. Some (like RUT and FXI) have come back and successfully retested that purple as support. That gives a nod to further short term upside. However, the blue mini channels are relatively flat and do not have the look of strong new upchannels. In addition, the long term charts broken down through the first green target and are heading toward the second. Therefore, I view the short

The week closed with modest gains after last week's confirmed 'Sells' across the board. While there may be some indication of short term bottoms on daily timeframes there isn't the support on the weekly picture - either from the indices themselves or from breadth indicators. For the S&P short-term stochastics look to be a couple of weeks away from a bottom - with longer term stochastics months away from doing so (although these could find support at the bullish mid-line if this is a true bull market). The S&P sits at a former resistance level - now support - at 1,062, but Fib retracements look better for a stronger bottom. Small Caps have returned below the two resistance levels, leaving behind a bull trap The Nasdaq is stuck in a no-mans land between support and resistance While Nasdaq breadth is weakening, it hasn't yet reached true oversold levels (although supporting technicals have). Bullish Percents are closer to overbought. While the Percentage of Sto

Finally, bulls make their move. The Nasdaq enjoyed a clean channel breakout with a solid move higher - even if volume was a little disappointing. First test will be the 20-day MA overhead. The Russell 2000 also enjoyed a channel breakout, matched with a CCI 'buy' signal. The semiconductor index is up against the 20-day MA which will be a big test for the other indices for the early part of next week. The S&P only managed to push just beyond channel resistance, but a shift in relative strength towards more speculative small caps is a bullish sign. So with the shift we now have the most bullish alignment for markets with small caps leading tech leading large caps. Look for more gains Friday. 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 rank

Tuesday's action looked to have given the bulls the impetus needed to firm Friday's reversal as a reversal, instead we got an inside day. Inside days build tension and suggest a big reaction to follow - which bulls hope will be higher. Is there a case for a channel breakout in the Nasdaq 100? The semiconductor index - which broke resistance yesterday - maintained its channel breakout with a second doji What today's action allows is for a tighter stop on the opposite side of the direction of the break (using today's high/low range). 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 cha

Markets closed higher, undoing the bearish challenge of yesterday and reinstating the reversal characteristics of last Friday. For the Nasdaq the narrow downward channel hasn't broken but it finished Tuesday on resistance with an indecisive doji on higher volume. The doji is good swing opportunity with a stop 1% on the flip-side lows; given the oversold nature of the market the break should be higher Favouring the upside break for the Nasdaq is the channel breakout for the semiconductors The recovery in large caps was pegged by resistance created by the prior reaction low but technicals favour a bounce. Market breadth is firmly down, so a retest of last Friday's lows is still a distinct possibility. The long term breadth picture is showing significant weakness with a stronger market bottom some distance off. 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 ‘

There wasn't the follow through Friday's reversal had looked to offer on paper. Large and Small Caps took the brunt of the selling. The Russell 2000 returned to the lower support band of its sharply falling channel - not quite touching but may do so tomorrow. The S&P could barely manage a return into Thursday's losses. This failure gives some idea as to the level of overhead supply. However, there is a positive with developing bullish divergences in supporting technicals Tech averages fared slightly better and were able to stay at the upper reaches of Friday's range. The semiconductors - closest to their 200-day MA - finished with an indecisive 'spinning top' but also with a 'buy' trigger in the CCI; look for semiconductor leadership over the coming days. Much depends on what the semiconductors do. Given their proximity to the 200-day MA they offer the best chance for a support bounce. If successful, it should help take the other indices higher - but