Tuesday, January 20, 2009

Stock Market Commentary: Down Big But No Volume

It looks like attention was diverted elsewhere as markets headed south on another round of financial weakness. The only positive was the lackluster volume - again, other distractions no doubt playing a role here too. The 50-day MAs proved to be a step too far for the 2-day rally and a November retest remains the favoured option.


Technically, the Dow shifted net bearish as key 8,164 support gave way:


The S&P was close to doing likewise, only on-balance-volume kept it from turning net bearish:


I am expecting some follow through downside tomorrow which may even see the November low retest come into play.

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