Thursday, January 15, 2009

Stock Market Commentary: Bulls make an appearance

Better late than never as buyers let the world know they are still alive, if feeling a little queasy. Volume was very respectable and marked the first accumulation day after a long sequence of down and distribution days. Bailout rumors fueled the day's recovery but the jury is still out as to whether any of this will work.

First upcoming test for Friday is the 50-day MA with the 20-day MA not far behind.


The Dow kicked in at once was considered support for a reversal head-and-shoulder pattern. But technical weakness continued.


The Russell 2000 made a similar stand as the Dow from a slightly stronger technical position:


So far, all of this looks like a rally to define upper ranges of channels; channels to test November lows.

Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website
 
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