Market Comments Submitted by Nick at Ambitions as a Stock Trader
Submitted by My Ambitions as a Trader and Investor
Market Indices Faced Resistance…
…at several key moving averages. This should not come as a surprise if you have been following the January 2008 sell-off. The DJIA is facing some heat around its 50 day MA. On the flipside, it has a bit of support at the 20 day MA. The NASDAQ is trending right along its 20 day MA and has yet to try to climb back to its 50 day MA. The S&P 500 is facing the exact same scenario as the NASDAQ. The Russell 2000 is showing more signs of a short term bottom as the 20 day MA and 50 day MA are narrowing the gap between them. This is normal due to the fact that the RUT has been in a downtrend for far longer than the other indices (since Nov 2007). What does this all mean? Look for micro/small cap stocks to outperform other issues on the three main indices. This of course will be a short-term move, so stick to trades. This is not the time to put anything in your IRA. If you are not a trader, stay out for a bit.
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