Wednesday, February 04, 2009

Volatility mixed; sideways market favoured

Volatility is not exactly firing on all cylinders, although it remains frothy relatively speaking. A declining 50-day MA which is acting as resistance suggests a trend towards lower volatility which should be good for stocks.


However, the double bottom has not been invalidated and with the index wedged between its 200-day and 50-day MAs it effectively operates in a no-mans land. Until one or the other breaks it will keep the market in a sideways consolidation with a slight (current) bullish bias.

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