Stock Technical Analysis: Wk of 8/24/09

After going into consolidation, then a slight pull back, Nasdaq (QQQQ) resumed its upward motion.  As expected, it did pull back temporarily, but the bulls came back swiftly and took control this week.  It is now back at the critical support level.  Next week will be a great indicator on whether this rally still has some legs or will fail to break through and retreat.  You can clearly see the rising wedge formation here.  Watch for a breakout either up or down.

SPDR Financial (XLF)

After breaking through the critical $13 level, XLF is continuing its way up.  It did re-test the $13 support earlier this week, but it bounced back from the support with a force.  Similar to the Nasdaq, it’s sitting at the next critical level of resistance.  Next week should tell whether it’s going to break through and hold that level or will retreat further from the current resistance.  This bull market is strong.

S&P 500 (SPY)

S&P 500 finished strong this week with a big rally the last few days.  It has now broken through the prior support and is making new highs.  Looking at the investor sentiment, the market still seems bullish w/ the potential for further upside.  Let’s see next week if this holds and determine how viable the next run could be.  Now 50% above the March lows, it sure is over-extended.  But we’ve all said the opposite before when the market kept crashing right?

United States Natural Gas Fund (UNG)

UNG is just plain ugly right now.  People are calling it “bottomless pit”.  Well, I posted an article on what the pros are saying on Natural Gas and UNG.

Gold Trust Shares (GLD)

Gold has been forming a triangle getting ready to either break up or down soon.  It has been trading both above and below the 50 day MA for quite some time, unable to make the next big move.  Keep an eye on the price for the next two weeks and you should be able to see a break up or a break down and decide your next move.