Stock Indices Stall At The 50 Day Moving Average
The S&P, NASDAQ and Dow have all tested their 50 day moving averages and it appears that we are seeing some selling come into the stock market at these averages. I'd still like to see some more weakness come into this market before I turn bearish again. What I am basically looking for is a downturn in the stochastics followed by a trendline break on the 60 min chart. On the other hand if the stock market can post 2 closes above the 50 day moving average, that would indicate strength and I would expect to see the market rally a bit more.
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1 comment:
Kevin do you follow Elliott Wave theory? In any case my count says we are in wave 4 of cycle magnitude. Wave 4 is generally as long as wave 2. If wave 4 stopped at the 50 then this would not be the case so I think that it is possible to see a rally past the 50 and might be possible to see perhaps Dow 9600-9750 before all heck starts to break out to the downside and we enter leg 5 down which will take us below Dow 7500 into next year.
Thoughts>
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