Major Markets breakout

Nasdaq A/D Issues showing continued positive momentum as we can see A/D 10dma is showing new high.

Posted by: __1Best__ Date: Tuesday, December 02, 2008 8:46:53 PM
Nasdaq A/D Issues ~ 10ma A/D is showing positive divergence even though we have seen wild swing of breadth. Lately I have not commented on market breadth because the breadth activities didn't precisely predict short term market activities as we have seen high volatility during the last few months. The last time when I closely monitored was until the market top during the last year, and since then, market breadth was gradually deteriorating into extreme levels as we have seen recently showing all time lows.

For short term market breadth, as noted above, 10 day ma is showing positive divergence indicating that the climactic selling was the during Oct 2008. Also, it indicates accumulating phase. With the recent volatility, especially going into mid Dec turn date, we could see lower price actions; however, underlying market sentiment is improving.



SPX & SPY have shown positive momentum and the comments noted on DOW/DIA apply to SPY and SPY. Next resistances are 900 and 90 +/-. As noted on the link below, breaking above 900 will not be a big huddle once markets decide to breakout decisively.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=33973688



DOW & DIA ~ While DOW have not decisively penetrated above resistance TL (daily/weekly), DIA have. Markets show positive momentum to upside until proven otherwise as intraday momentum is now trading to upside. Because of market remained consolidation period for the last few weeks, daily indicators are now getting extended going into the Fed/OE pivotal week which noted as the cycle pivotal week. That does not mean that "the bottom or the top" of markets even though about 70%-80% of the turn dates were in sync with market turns.

Markets are oversold as we can see on weekly/monthly charts. So, while it is a possibility that markets can turn down during the mid month, for now, market momentum is to upside until proven otherwise. Because many are expecting the CIT, markets can do unexpected, however. Recently, markets have shown fast momentum to either direction - up or down - so, need to remain flexible for short term. Next resistances are 9000 and 90 +/-.




Qid is consolidating in a diamond formation, closing below 50dma. Markets are breaking out, and this is a signal which is confirming the move. 2x contra etfs have exploided during the Sept/Oct sell-off. Of course, markets could sell off with sharp reversal as that is a norm lately.

Qs breaking above 20dma, targeting to 34.
Be prepare for whipsawing market actions, however, as it can quickly change for ST trading.

SPY ~ a continuation of vst trend target to 100 +/-.

$OEX measured target to 483 with a break above vst sym triangle.

$GASO has shown very strong trend down to 0.91 with macd showing +D.

$USD is showing neg D which is signaling a vst pull back after the recent trading up from 70.70 reversal. Supports are 84 and 80 +/-. After a consolidation, USD 86.95 monthly is showing positive divergence targeting to 93.50 +/-.

Gold 752.2 is consolidating in a down channel formation. It is closed below 20dma support. As alerted after bouncing off from 700 +/-, it is now again momentum is down. With potentially USD pulling back, watch 740 +/- as vst price channel.

DOW 8635.42 monthly is showing hopeful signs closing above 200ma support near at 8500.

Market performances since 1995 - DOW, NYA, and SPX up 124.65%, 99.59%, and 86.23%, respectively.