Daily chart for S&P
Daily chart for NASDAQ
I’ve been down with a vein infection most days over the past 2 months so I’ve been unable to have the extra energy to do this market analysis, let alone trade the stock market. However with the illness finally under control, I’m slowly getting my energy back.
As you can see from the charts above, NASDAQ had broke way below the 50 and 200 day moving average. This is very bearish, however S&P and Dow seems to be finding some support at the 50 day moving average. On longer term charts it seems like the down trend is still intact, with all three indexes making a bearish engulfing candlestick pattern on weekly charts.
The recent down move this week began after S&P and Dow failed to rally above some serious resistance levels. This caused a 200 point down move in the Dow and pushed the indexes far away from their MOBO bands. Baring any unexpectedly high unemployment claims on Thursday, we should see the indexes either bounce back up or move in a sideways fashion to the lower MOBO bands this week. I’m still divided as to which direction the market would move after that and I will be keeping most of my funds on the side until I can make a decision.
The SPX failed the 50MA already didn't it? Only Dow is above. NASDAQ is in the bad season till year end. With Sept and Oct coming up... won't be pretty!
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