Wednesday, February 04, 2009

Stock Market Commentary: Nasdaq can't break 50-day MA

It was looking promising for the Nasdaq as it pushed early gains, but these gains dissipated by early afternoon on the release of earnings by Kraft Foods and Disney.


An additional stress is about to enter the fray as declining resistance from June and September reaction highs will soon be applying pressure.

The Dow clocked up a firm distribution day and price action looks destined to reach November lows, much as it did for the DJ Transportation index. Technically, the Dow Jones is in significantly worse shape than the Nasdaq.


The only index which looked like it could offer something, the semiconductor index, was pegged by June-September resistance; however, a push past 220 would be very bullish.


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