Courtesy of Declan Fallon
The Percentage of Nasdaq Stocks above the 50-day MA rose to 62%, leaving it on course to test resistance from late 2010, currently around 70%.
The Nasdaq Bullish Percents also crossed the 50% halfway mark. Declining resistance for this index is around the 55% mark.
The NYSE Summation Index also played its role. What had looked to be a ‘bull trap’ in October has turned into a new, shallower angled decline – a bullish development. A push above 750 will break this new resistance point.
The Russell 2000 was one of the indices able to make a move as it cleared 760 resistance. The next challenge for the index is former neckline resistance at 780.
The Dow also cleared resistance of its channel, albeit on a small gain. Volume climbed to register an accumulation week.
Key for this week will be seeing the market breadth improvement convert to points on the board for indices. The Dow and Russell 2000 have made a good start, it’s up to the S&P and Nasdaq to follow suit.
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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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