Stock Indices Rally
Stocks were up across the board today with the S&P up 1.5% closing right near its high for the day. The NASDAQ, S&P and Dow are all very close to testing their 50 day moving averages which also coincides with a .618 fib retracement level.
Multiple closes above the 50 day moving average will tilt the odds in favor of a test of the year high. A failure to penetrate the average followed by a downturn would suggest a retest of the February lows. I think the 50 average will be very helpful in determining the next move for the stock indices so lets just wait and see what happens.
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3 comments:
Where would you guess we are headed Kevin and do you see the golden cross on the u.s. dollar as a indicator the market is going to go back lower ?
Hey, just want to say hi. I'm new here.
it is never about 50MA or 200MA, it is always about supply and demand (support & resistance)
50MA in this case coincide with the previous resistance high and that itself is a hurdle to overcome. Traders all over uses so many different types of MA such that to say 50MA will determine whether the uptrend will be rejected is really misleading. If that happens, it is not because of 50MA, rather supply is greater than demand at that level and there are just not enough demand to mop up the supply available, thus the fall in price.
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