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Stock Market Commentary: Modest Gains But No Break

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.

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Stock Market Commentary: Doji Pair

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



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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 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 watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own trading system and sell your trading strategy in our MarketPlace to earn real cash. Read what others are saying about Zignals on Investimonials.com.

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Stock Market Commentary: Market Pause

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; 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 watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own trading system and sell your trading strategy in our MarketPlace to earn real cash. Read what others are saying about Zignals on Investimonials.com; ranked top-20 software product out of 285 listed. Join today - it's free!

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Stock Market Commentary: Clean Breakouts

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 the week wears on.


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 watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own trading system and sell your trading strategy in our MarketPlace to earn real cash. Read what others are saying about Zignals on Investimonials.com; ranked top-20 software product out of 285 listed. Join today - it's free!

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Weekly Review of Stockcharts.com Publishers' Charts

Markets are off to a bright start for Monday - but what had stockcharters' to say before the open.

Yong Pan of Cobrasmarketview 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 definitely at work here on the upside. Thus, it was time to take a stab at it.

We are at the upper end of that larger green and the momentum indicators are approaching extremes already, so I suspect the upside will peak out again soon in the short terms. The long term charts still appear to have unfinished business on the downside, but that may take weeks to play itself out.

2/25 -- The short term charts remain in the new downward red minichannels, but with a number of indexes closing right at the upper line. Until they break, the short term is heading lower and the long term charts are stiull heading toward the lower green lines from last March.

2/23 -- Breaks have now occurred on the short term charts of all three small cap indexes, the Dow, and the high-beta sectors like tech stocks. The SPX and the Dow hourly charts saw perfect line touches with no breaks, but that may only be initial support. Another short term downleg has likely begun.

2/22 -- Short term momentum has stalled, but remains within the upchannels that began Feb 5th for all but a scant few indexes. GLD is one for which the momentum has actually turned somewhat downward and broken the blue upchannel.

Anthony Caldaro of Objectiveelliotwave.com has labelled a five wave structure up in the Dow 60-min which appears to be mapping too form. Could stall out at 10,500 if wave 5 = wave 1


Michael Eckert of EWTrendsandcharts has fan resistance marked - but it looks to be breaking in the Russell 2000; will there be a challenge (and break?) of 650 resistance?


Interesting coiling action at 5-min support in the S&P (for those who read this in time to take advantage!)


Finally, we have the Joe Reed summary:


Bank Index on a 'sell' trigger as part of a trading range


As Nasdaq Summation Index switches to a 'buy'


Lets see how today pans out - could be an important gauge for the rest of the week if current gains stick.


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 watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own trading system and sell your trading strategy in our MarketPlace to earn real cash. Read what others are saying about Zignals on Investimonials.com; ranked top-20 software product out of 285 listed. Join today - it's free!

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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 watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own trading system and sell your trading strategy in our MarketPlace to earn real cash. Read what others are saying about Zignals on Investimonials.com; ranked top-20 software product out of 285 listed. Join today - it's free!

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Weekly Market Commentary: First Sell of Bounce

After the past couple weeks of gains last week was the first down week for the counter rally. Technically, the confirmed 'sells' from early February haven't reversed so bears hold the edge as far as the weekly picture is the concerned. In the S&P there was a confirmed distribution week


It was the same story for the Nasdaq


The past few weeks saw the Russell 2000 negate what had looked to had been a bull trap, but the losses of this week haven't undone this work; 614 key support here


Market Internals saw what looked to be a spike low for the Percentage of S&P Stocks above their 50-day MA with a stochastic 'buy' - but no MACD confirmation 'buy'


The Nasdaq Percentage of Stocks above their 50-day MA did not spike as low as the corresponding S&P market internal, but still did enough to see a stochastic 'buy'. It too is waiting on a MACD 'buy'


While the Percentage of Stocks above the 50-day MA for both the Nasdaq and S&P suggest a bottom there hasn't been the confirmation from the respective Summation Indices or Bullish Percents. So far, what's in play is an intermediate bear trend counter rally.


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 watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own trading system and sell your trading strategy in our MarketPlace to earn real cash. Read what others are saying about Zignals on Investimonials.com; ranked top-20 software product out of 285 listed. Join today - it's free!

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