Tuesday, November 13, 2007

Market Review

The Nasdaq found its legs at the 200-day MA and is at least enjoying a bounce. The Nasdaq 100 wasn't as weak and has risen in sympathy prior to testing its 200-day MA. However, yesterday's selling put a big dent in the rate of decline for the supporting technicals. Bullish percents, stocks above 50-day MA, and summation index all suggest there is likely more downside to come. This will be of little comfort to large and small caps which are lingering below their respective 200-day MAs (small caps are well below their 200-day MA).