Sunday, February 01, 2009
Weekend Review: Neutral once more
By Declan Fallon
Early attempts at a buy signal for the Nasdaq and S&P drifted as stochastics again dropped into oversold territory. Their respective MACD's maintain a 'buy' but for all intent and purposes it looks like both indices want to check out November lows.
Nasdaq Bullish Percents also kissed good-bye to its breakout, leaving instead a bull trap and a sell trigger in stochastics; best bet for bulls is a new higher low which shouldn't be too difficult, particularly if it is associated with a new low in the Nasdaq.
The Nasdaq Summation Index could not have played better resistance; when it breaks it will have great significance and likely confirm the next cyclical bull market.
The NYSE Summation Index has fallen into line with the Nasdaq. It too has a clear definition of resistance
The sensible thing to do is to wait for breadth indicators to enter more oversold conditions before considering long side positions.
Early attempts at a buy signal for the Nasdaq and S&P drifted as stochastics again dropped into oversold territory. Their respective MACD's maintain a 'buy' but for all intent and purposes it looks like both indices want to check out November lows.
Nasdaq Bullish Percents also kissed good-bye to its breakout, leaving instead a bull trap and a sell trigger in stochastics; best bet for bulls is a new higher low which shouldn't be too difficult, particularly if it is associated with a new low in the Nasdaq.
The Nasdaq Summation Index could not have played better resistance; when it breaks it will have great significance and likely confirm the next cyclical bull market.
The NYSE Summation Index has fallen into line with the Nasdaq. It too has a clear definition of resistance
The sensible thing to do is to wait for breadth indicators to enter more oversold conditions before considering long side positions.
