Forex Signals

So we had more improvement to the technical picture today despite the slightly declining volume. Given that this is a Monday in the dead of summer the volume wasn’t that bad. This doesn’t matter much from the technical perspective but after today’s pop all the major indices are positive for 2010. That little factoid may improve investor sentiment though. (It certainly can’t hurt.) However, I’m still mindful of the June highs acting as resistance.

We’re seeing a change in relative strength among the major indices. The S&P 500, which used to lag the Russell 2000 and Nasdaq is now performing better, at least with respect to the spring and earlier summer highs. I’m sure that the recovery in oil stocks is helping the S&P’s relative strength. As for the Nasdaq, it has a bit of a leadership crisis right now. GOOG is still down 20% for the year and AAPL, which is a huge percentage of the Nasdaq-100 (QQQQ), hasn’t cleared its July high, much less its June (and also all-time) high. Sure Apple’s chart still looks fine but I’d like to see some other stocks to start doing the heavy lifting just in case AAPL gets weak.

More improvement in the trend table but one can easily argue that we’re still range-bound in the intermediate term.