It was left to small caps to lead and lead they did. The week closed with an almost 6% gain for the Russell 2000 which was enough to return a MACD trigger 'buy' and negate 2008 reaction lows as resistance. Is next resistance up around 750? The positive move from small caps filtered down to Tech But large caps still lagged Market Internals were left either overbought (although there was a Confirmed 'Buy' signal) or close to resistance with significant bearish divergences at play But momentum is with the bulls for now. Follow Me on Twitter Build a Trading Strategy in Zignals; Read how and earn real money (once out of Beta) in this PDF. 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 or the Zignals Trading Strategy MarketPlace . Zignals offers a ful

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The tight trading goes into a third day, keeping both bulls and bears guessing. For the Nasdaq this was a close at resistance but on lower volume; it looks ready to challenge 2010 highs. This as even the semiconductor index dropped back to test its 50-day MA. doing so with a dragonfly doji The Russell 2000 managed a new closing high but hasn't taken out the highs of yesterday (a potential bearish shooting star). An upside breakout is perhaps the most likely outcome, but whatever whatever happens the tight action has built a level of tension which will unwind once the 3-day range is broken. Follow Me on Twitter Build a Trading Strategy in Zignals; Read how and earn real money (once out of Beta) in this PDF. 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 or

A second day of indecision to follow the first, but todays came on lower volume. The 2-day set up continues to offer a swing trade opportunity with a trade on break of (2-day) high/lows with a stop on the flip side. The Nasdaq is a good example However, the semiconductor index undercut its prior day's low to settle just above its 50-day MA; whether this is lead for the Nasdaq will be proven tomorrow. While the Russell 2000 made an intraday move to new 2010 highs but finished just below resistance on a doji. Market Internals fast approaching resistance which will be another opportunity for bears to apply pressure Follow Me on Twitter Build a Trading Strategy in Zignals; Read how and earn real money (once out of Beta) in this PDF. 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

For most indices it was a relatively disappointing day as early gains disappeared by the close, although market leader Russell 2000 got very close to new highs for 2010 and finished the best of the indices. For Wednesday this is the index to watch. For the likes of the Nasdaq the day finished with indecision, marked by the doji/gravestone doji. Given overbought conditions this may be interpreted as bearish but a close below today's low is required for a possible reaction high (and with the Russell 2000 challenging highs it would appear this is a pause in a broader advance). So no reason to be a seller here - yet. It was the same story for the S&P Follow small caps and swing trade the doji of other indices 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 ;

It was a clean gap breakout for many of the key indices - a day which will have caught many shorts who entered at 50-day MAs with their pants down. Volume climbed to register an accumulation day, leaving room to resistance and both 50-day and 20-day MAs to look too as support. The Nasdaq demonstrated the breakout clearly As did the Nasdaq 100 The Russell 2000 continued its leadership role with a scintillating 2.25% gain. If small caps are able to add another a percentage point it will mean new highs and a resumption of the bull trend - this should pull the other indices higher. Prior technical weakness also reversed. The strength in small caps ran in contrast to large caps which limped over their 50-day MA. Weakness in large caps is not necessarily bad as it reflects a shift from safety to more speculative issues, but it will be important for large caps to follow small caps higher. Tomorrow will probably see some consolidation and key will be ensuring 50-day MAs hold as support as th

Markets are off to a bright start for Monday - but what had stockcharters' to say before the open. Yong Pan of Cobrasmarketvie w kicks off with mostly neutral signals as overbought conditions had worked their way out of the market. Equal amount of buy and sell signals. Although it's early days yet, the SPY is on course for a new reaction high as it pushes through 50-day MA resistance Buy signals in play from last week Mechanical trading strategy on a 'Long Signal' Tech going well too Richard Lehman of Trendchannelmagic.com gives his 2 cents. He calls for something larger to the upside. 2/28 -- I've now drawn green upchannel lines on the short term charts to show the larger channel that is taking shape off the 2/7 low. Until now, we had an upward blue mini from 2/7-2/22 followed by a smaller red mini downward. The Dow is one of the few indexes still in that red mini. The small caps and others have now broken back upward, telling me that something larger was defini