Market Comments Submitted by Nick at Ambitions as a Stock Trader
Submitted by My Ambitions as a Trader and Investor
A Bit of Resistance…
Looks as if the DJIA is hitting some resistance at its 50 day MA. So far I’m not surprised. Many thought that the worst was over and that the markets are ready to rally to new highs. Not so fast. Even with the impressive strength that was bestowed upon the market (due to a string of small positive tidbits), the truth is, we are still in a down trend. The only way to break out of this down trend is if the DJIA (and the rest of the indices) break through the 200 day MA, allow the 50 day MA to catch up, and breakout (2% or higher) on heavy volume. Speaking of volume, check out the volume for the past few days. It is all average volume, folks. This means that the institutions have been absent for the greater extent of this oversold bounce. In my opinion, we have a while to go before the markets truly bottom. But rest assured that when they do, there will be plenty of opportunities to make up for the current dismal action.
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