Wednesday, November 07, 2012

Daily Market Commentary: Bye Bye Nasdaq 200-Day MA

It looks like Markets decided to take a leaf out of 2008 and sell off after Obamas' (re-)election. The damage was extensive, and any tip-toeing around support was quickly blown away.  Not surprisingly, the day ranked as a confirmed distribution day given the level of point loss.

The Nasdaq showed the gap loss at its worst. That MACD trigger 'buy' won't be happening tomorrow! Also, the On-Balance-Volume 'buy' was negated too.


The Russell 2000 finished the day closest to its 200-day MA.  Bulls may want to pay attention to this tomorrow (807.23).


The S&P hasn't yet dropped to its 200-day MA. It may yet see a test tomorrow, although the Russell 2000 probably offers the lower risk play.


In part, because the Dow Jones cracked below its 200-day MA.


My sectorbreadth studies suggest the sell off isn't done and markets aren't in a position to develop a strong swing low - yet.  Short term, Russell 2000 and perhaps the S&P offer bulls something to work with.

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.

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