Stock Technical Analysis: Wk of 7/13/09

NASDAQ felt hard resistance at the $37 range and could not break the previous highs.  Now it seems to be forming a double top pattern, which is a bearish indicator.  It has broken through the $35 resistance level and is trying to inch its way back up.  This week will be critical in determining whether we should expect a reasonable pull back or if the market resiliency prevails and starts to rally again.  Personally, I am getting more and more bearish at this point on overall sentiment.  Even the NASDAQ, which has been leading the rally, is starting to look bleak on technical analysis.

Microsoft (MSFT)

Microsoft tried to break the $24 resistance several times but with no success. After bouncing down from the resistance, it has been a free-fall since.  At this point I would say MSFT is looking bearish now unless it can form a new support level around $22 and bounce back up.  Otherwise look for support around $21.  I wouldn’t go long here until I can confirm that the stock is moving its way back up.

SPDR Financial (XLF) requested by Yahav B.

Lower highs, lower lows. That’s a symptom of a bearish trend and the financial firms are certainly being plagued by it.  It has been bearish for a few months now since hitting its peak at $13.  I do expect some support this week though given it’s sitting at a pretty critical support level. I wouldn’t be surprise if it bounces back from here at least temporarily.  However, I am overall bearish on the financials right now looking at the technical analysis.

S&P 500 (SPY)

Everyone’s talking about the head-and-shoulder formation for the S&P500, which is a pretty reliable bearish indicator.  I wouldn’t quite get excited just yet and go short here (if you are not short yet).  I would wait until you see a confirmation of a break through the $87.5 range support.  If it starts to fall through it, I would start moving my position short.  If you’re long, be ready to manage your risk here.

Genereal Electric (GE) requested by Shawn and Wael

GE also looks bleak along with many of the stocks out there right now.  I definitely will be hesitant to buy long right now.  However, I personally would not go short here also given the next support levels and the upcoming earnings report on July 17th. I don’t like to mess around with that stuff in this crazy market

Minera Andes, Inc (MNEAF) requested by Frank

I personally don’t mess around with penny stocks much, but it looks like it’s approaching the support level soon.  If you’re looking to go long, at least wait until you see a rebound from the support level.  I would also recommend not to hold these overnight since any rumors or news can change the direction significantly on these things.  With penny stocks, there are things that will completely throw off any technical analysis out there.