Higher Low or Lower Low? – Market Analysis for 17th May 2010 by Singaporeseeds

The markets finally gave way on Friday and made a nice down move. Volatility has been expanding over the past few weeks and I believe we should see such big movements quite frequently over the next few weeks to come.

Daily Chart of the Dow


Daily Charts of the S&P


Daily Charts of NASDAQ


As you can see on the charts, all three indexes failed to break above their respective 50 day moving averages. Now that we have failed the 50, I have 2 more support levels and that’s the MOBO support and the 200 day moving average. All 3 indexes broke MOBO support on Friday but rallied at the last hour to close right above it. A break of this support indicates that there is strong momentum down. I will be looking at this support level closely this week. A break of this level would mean that we may be going down to meet the 200 day moving average at around 10250 for Dow, 1110 for S&P and 2250 for NASDAQ.