Courtesy of Declan Fallon
The Dow cleared a thick band of supply between 11,730 and 11,895 and pushed into congestion of early 2011. It has been a straight rally from the 10,400 low so the former band of supply should now play as demand. Look for buying volume to increase on the next push below 11,900.
Likewise for the Nasdaq. Helping it is the higher volume accumulation enjoyed over the week.
As for next week, keep an eye on Large Caps. It will likely be a ‘soft’ week with little net change. But with seasonal factors playing more of a role as year end approaches any weakness will likely play as an attractive buying opportunity.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.
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