Wednesday, May 13, 2009

Stock Market Commentary: 20-day MAs break

It had to happen eventually but the 20-day MA broke as support for the Nasdaq as technical weakness magnified. The next port of call is the 50-day MA.


The Dow dropped back to its 20-day MA so at least bulls have something to defend.


The Nasdaq 100 suffered a significant gap down and looks set to add to its weakness


But hardest hit were Small Caps. Technical weakness intensified as it started to underperform Tech; markets are left aligned in their most bearish formation {Large Caps > Tech > Small Caps}


50-day MAs are next on the menu

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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