Market Comment

Major markets are trading near at pivotal resistances: SPX 850, DOW 8100, Nasdaq 1550, and Qs 30.80 going into the stimulus plan voting. While daily and weekly price momentum is developing to upside, intraday price action is now showing negative divergence. If market sentiment is healthy and bullish, market price actions can move up with strong advance even with negative divergences. That is not the case as market sentiment is quite bearish and edge. Nevertheless, breaking above the noted resistances is quite positive as the resistances are pivotal for further price advancement to SPX 900/1000. Of course, failing to break to upside market will revisit the Nov 2008 low.

http://trend-signals.blogspot.com/2009/02/stimulus-program-debate.html
Stimulus plan debate was healthy debate making progress to effectively spend the huge amount of money. And it is necessary to take some time to refine and to redefine many details. Hopefully, the debate will continue with healthy and productive modifications and will be approved during the next week or soon.

We have dreaded Eco news in premarket, and how markets will react to the eco news -- probably bearish as usual.





Qs daily chart shows a positive macd momentum; however, market sentiment is very bearish and a break out from the formation is an initial short term directional signal.

I just hope that the next week will not be bloodbath prior to the President's & Valentine's day. We had "Valentine massacre markets before; but, I hope that is not the case.




Qs 60min chart looks like a bee hive with red/greed arrows. As shown on the chart, Qs initially traded above the symmetrical triangle formation; however, today's HOD 30.77 is a strong resistance.






With VLT "A" correction scenario, the following Qs chart is ending wave 5 -- only if the break to upside is valid which it looks to be with low probability if market reacts very negatively with the Eco news in premarket. In any case, breaking lower support invalidates the scenario.

I noted on the VLT corrective "A" wave scenario which is logical than "C" considering the US economic and financial condition. Furthermore, major market formations suggest that markets are in "A", not "C", and Nasdaq has its own wave pattern.