Swing Trading Strategies & Stock Picks Since 2003

On a week-to-week basis there wasn't much going down for the indices. The Nasdaq was able to make a positive backtest of 1,759 support, finishing the week a couple points shy of its high.

The Russell 2000 lost weekly support of 517 (just); although the doji may be seen as bullish it must be countered by the neutral long term and overbought short term momentum.

The Percentage of Stocks above the 50-day MA for both the Nasdaq and S&P collapsed; fewer stocks holding the rally mean it won't last forever. Without broader participation the rally has the same chance of success as the 2006 divergence brought about in 2007.


It should be added the technicals for the Percentage of S&P stocks above the 50-day MA switched negative to 'sell'.
The longer divergences play between parent indices and supporting breadth the likelihood the next move down will be swift and hard. Based on some of my earlier analysis a big move down sounds too expected by the market - and therefore unlikely. But I don't know how a continued rally can hold in the face of growing breadth weakness?
May lows in the daily will probably be a significant line in the sand for bulls locking in profits from positions taken earlier during the year.
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