No real surprise to see market rallies which kicked off in March 2009 come to a bitter end in one of the worst weeks for the markets. The S&P finished the week with a low just above a former resistance level - turned support - of 1,062. ($SPX) via StockCharts.com The loss was more stark in the Nasdaq which gave up almost 8% on the week. Drawing in Fibonacci retracements sets two targets; former resistance turned support at 2,020 (61.8% @2,050) and 1,759 (3.2% @1,751) with a seasonal timeframe of September/October for the lows. Nasdaq via StockCharts.com The Percentage of Nasdaq Stocks above the 50-day MA had a shocking 58% decline on the week; jumping from overbought to oversold in short order. But technicals will have to do likewise before a bottom of consequence is in place. For now there is a 'Confirmed Sell' trigger ($NAA50R) via StockCharts.com The same was true for the Percentage of S&P Stocks above the 50-day MA as it lost 79%. The closest decline t

HFT trading is taking the wrap for yesterday's volatility which prints like a data error on a chart, but whatever the contributing factors market participants (of the human kind) now know how quick and how far the market can plunge before any semblance of defense can be mounted. Charles Kirk has a great point-by-point summary on yesterday's trading . With that knowledge it's going to be hard to see buyers coming in without first tentatively testing the lows of Thursday. The bad news is that Large Caps lows are below Dow and S&P 200-day MAs (Nasdaq 100 too). If 200-day MAs were to break the tone of the market will no longer be buy-the-dip, but get-out-stay-out. So in the short term - look for markets to revisit the lows with any rally (*cough*) likely to stall at newly created resistance at 50-day MAs. As for individual indices, the S&P confirmed net bearish technicals; both stochastics and on-balance-volume registering 'sell' triggers on yesterday'

Yesterday's selling - considering volume, relative loss, and 50-day MA support - should have provided a strong position for bulls to work a response. However, when markets opened bears were able to press in early trading to easily push markets away from 50-day MA comfort zones so when buyers materialized there was a reluctance to return markets back to their natural support. The S&P is close to a net 'sell' on technicals as the index closed with an indecisive 'spinning top' below the 50-day MA. Relative strength has shifted to its most bearish alignment of Large Caps leading Small Caps leading Tech stocks. ($SPX) via StockCharts.com While the Dow was able to cling on to its 50-day MA ($INDU) via StockCharts.com As was the Russell 2000 (Small Caps) - even with its underperformance relative to Large Caps. ($RUT) via StockCharts.com Although the Nasdaq lost its 50-day MA ($COMPQ) via StockCharts.com While the semiconductor index closed net bearis

With the losses experienced today markets were left nicely poised to work off 50-day MAs tomorrow. The S&P was almost text book in defense of its 50-day MA with volume siding heavily with bears; things are very close to an on-balance-volume 'sell' but so far the accumulation trend remains dominant. Should the 50-day MA at 1,168 break then traders will look to a defense of 1,150. ($SPX) via StockCharts.com For the Nasdaq there was a clear slice of the support zone which was defined by the breakout gap. Again, the 50-day MA came to the rescue of the bulls with the next support level down at 2,323 - some 80 points away from the 50-day MA. Relative market strength also swung away from speculative Tech to Large Caps - although Small Caps remain dominant (moving from bullish to bullish-neutral) ($COMPQ) via StockCharts.com Speaking of Small Caps, the April breakout gap saw its first test and held. The 50-day MA is still some 20 points away so Small Caps are holding up we

With the Bank holiday in Ireland this is a day late, but the tone is unlikely to be anything different! Anthony Caldaro of Objectiveelliotwave views the current undercertainty of the past week-and-a-bit as the first wave of a larger third wave higher; that is, there is more juice in the tank for bulls and current weakness is a buying opportunity. Listed targets of 1,219 (hit) and 1,326 remain. Yong Pan of Cobrasmarketview has kept with neutral signals on the short term and a bearish slant on the intermediate time frame. Yong Pan's automated strategy has already taken profits for the March run but has a new long signal in play. Although other 'sell' triggers remain Going back to earlier short term signals, Peter has a suggested target of $125 as part of the triangle (another reason to be a buyer?) First suggestion of a broadening wedge in the Nasdaq 100 Richard Lehman of Trendchannelmagic.com has marked in new downchannels on 5-minute charts wit

Give a little, take a little. The narrow range trading of before has given way to a more volatile range, which for many indices lies bound by 20-day and 50-day MAs. For the S&P, down volume exceeded up volume since the middle of April although technicals have not fully rolled over. ($SPX) via StockCharts.com For the Nasdaq the former mid-April breakout gap is providing the support. The volume pattern is not as bearish as it is for the S&P so there is some reason for bulls to be optimistic ($COMPQ) via StockCharts.com If there is a catch it's that the semiconductor index has clearly broken both rising trend and the prior gap. Technicals are also significantly weaker which doesn't bode well for either the Nasdaq or Nasdaq 100. ($SOX) via StockCharts.com Also switching net negative on the technical front was the Percentage of Nasdaq Stocks above the 50-day MA. This suggest there will be a lower low before a higher high; look for the test of 50-day MA which for

A week when resistance came to the fore (or at least false breakouts). Tech averages suffered the most; the Nasdaq pinged back off 2,535 and lost support from last week's breakout Nasdaq via StockCharts.com The Nasdaq 100 had a clearer bull trap, reversing below 2,022 cleared last week. Nasdaq 100 Index via StockCharts.com The Percentage of Nasdaq Stocks above the 50-day MA honored the bearish divergence established at the start of January 2009. How far will it fall? In the summer of 2007 this breadth indicator dropped below the 30% threshold that typical marks bottom but may have instead forewarned of a top - will the current decline break below 30%? Nasdaq Percent of Stocks Above 50 Day Moving Average ($NAA50R) via StockCharts.com The S&P reversed in a no-mans land with rising support still to come ($SPX) via StockCharts.com The same was true for the Russell 2000 ($RUT) via StockCharts.com After the weeks of gains its unlikely we are going to see a sudden