A Bit of Resistance...
Looks as if the DJIA is hitting some resistance at its 50 day MA. So far I'm not surprised. Many thought that the worst was over and that the markets are ready to rally to new highs. Not so fast. Even with the impressive strength that was bestowed upon the market (due to a string of small positive tidbits), the truth is, we are still in a down trend. The only way to break out of this down trend is if the DJIA (and the rest of the indices) break through the 200 day MA, allow the 50 day MA to catch up, and breakout (2% or higher) on heavy volume. Speaking of volume, check out the volume for the past few days. It is all average volume, folks. This means that the institutions have been absent for the greater extent of this oversold bounce. In my opinion, we have a while to go before the markets truly bottom. But rest assured that when they do, there will be plenty of opportunities to make up for the current dismal action.
posted by Nick M. @ 2:01 PM
3 Comments:
NCOC looks ready for a bounce tomorrow (thurs.).
Market has been really slumbery (made the word up.), lately though.
-Chad.
Chad,
Your word "Slumbery" seems describe the market rather well. I personally can't believe how boring things have become. No volume, no volatility, no nothing.
As far as NCOC bouncing, I sure hope so. Ever since I bought it the stock has been acting poorly...
She's showing one of my favorite technical indicators right now; I'm going to put it to the test (crappy market to test but I'm bored, as you described above.)
- A run up on day one, and three days of slipping on low volume before a runup on day five. ...let's see.
Plus it's running right along some of its SMAs. It's so "ideal" I'm afraid it will bomb on me just to prove that nothing is sure ;)
-Chad.
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