Tuesday, March 31, 2009

Market Sentiment: New highs in Percentage of Stocks above 200-day MA

In an important first step towards building a more sustainable rally than we have seen in the past the number of stocks trading above their 200-day MAs rose for both the Nasdaq and S&P. With these new near term highs in place it will be important for this figure to stabilize above new support (former resistance) if buyers are going to accept a more stable market. The Nasdaq is more important than the S&P in this regard.


Other sentiment indicators point to an intermediate timeframe top - so the new downleg is only in its early phase.

567 Nasdaq Stocks currently trade above their 200-day MA.
366 Nasdaq Stocks trade above their 200-day MA and have a price greater than $1
196 Nasdaq Stocks met the aforementioned conditions and had a 60-day MA of Volume above 100,000 shares a day
4 Nasdaq Stocks met the aforementioned conditions and made a new 90-day high. These were

Dollar Tree (DLTR)
DTS Inc (DTSI)
J2 Global Communications Inc (JCOM)
Optimer Pharmaceuticals (OPTR)

Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.
 
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