Weekly Market Commentary: Spike High in 52-Week Highs

From Fallond Stock Picks
January 19, 2013 - 6:36pm

Last week, the NYSE 52-week high was approaching a spike high, but this week may actually mark the spike high.  The 19-week EMA at 419 is the highest it has been in 10-years.  The Nasdaq hasn't spiked to the same degree, but is approaching a yearly high.  However, spike highs in this indicator do not usually mark major tops, but are typically associated with the start of consolidations.The Percentage of Nasdaq stocks above the 50-day MA remains close to maxed out at 78%. Technicals are heavily overbought.  Again, as with 52-week Highs, swing highs in this breadth metric don't directly lead to a decline in the parent Nasdaq.Nasdaq Bullish Percents are inching their way towards resistance.  Technicals have only entered overbought territory, but stochastics usually remain overbought for a number of weeks before this breadth index peaks.It's a similar story for the N...


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