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Getting Technical: Weekend Update


November 13, 2010 Analysis from Serge Perreault

http://dshort.com/

Here's the latest weekend update from Serge Perreault, a Chartered Accountant and market technician located near Montreal, Canada. Serge has been following the U.S. market in a series of weekly charts. This week he comments on the S&P 500 and the Dow in a pair of weekly charts, and he includes a monthly look at the Dow over the past decade. The S&P 500 pulled back to sit on its upcycle support, on average volume and on falling momentum. See next chart for comparison with the Dow.



The Dow broke its upcycle support (grey) on falling momentum too and is now neutral, inside an uptrend formation from 2009. See next chart for a 10 year monthly perspective of the Dow.



We see in the monthly chart below that the Dow is now neutral, like in 2003-2004 when the uptrend formation turned into a 14-month sideways trading range. It should be noticed too that momentum is now mixed (falling ROC9 and near-resistance ROC24).