Nasdaq Closes Below It's 50 Day Moving Average
For the past few weeks I've been commenting on the weakness in the nasdaq. Today all 3 major indices sold off slightly with the nasdaq leading the way down. The nasdaq was down about 1% and closed BELOW it's 50 day moving average for the first time in 4 months. This move down also confirmed the double top that was made over the last 5 weeks. I remain bearish and continue to look for further weakness.
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2 comments:
Kevin,nice work. stumbled on to your blog from a link at Trader mikes. ill be back. i own QQQQfeb. puts at $44.00 strike.looking for more down action. will the 50dma become resistance? good trading!
The 50 day average will only become resistance in my opinion if we get more of a move down and then rally back up to test it..
What we need to see now is some weakness in the strong stocks and groups. I think if the nasdaq can pull the S&P down ( which I think it will) the qqqq will drop like a rock.. So far, it looks like things are beginning to weaken slightly, but lets take one day at a time because the S&P hasn't broken it's uptrend yet..
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