We are near the end of 2009. The stock market has rallied from its March low and it has retraced more than 60% of it down swing from a high of 1521 to a low of 801.
The technical picture is indicating weakness ahead. The MACD indicator has made a bearish crossover. +DI is still above the –DI but it looks to be turning towards the –DI. ADX is also decreasing which shows a weakness in the current uptrend. Stochastic indicator is also showing a bearish stance.
The market needs more positive news to push it higher. Any retracement should be well supported at 1157.
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