Friday, December 05, 2008

Indices continue to struggle at 20-day MA

Irrespective of the market reaction to the jobs figure, the indices 20-day MAs have held fast as resistance since August (bar one blip in early November which quickly evolved into bull traps). Nasdaq clearly shows the pain:

S&P not immune - although it has nicked a couple more crosses in recent weeks:

Given the proximity of indices to this average and the negative hit to the futures following the loss of 533K jobs, the likelihood of challenges to the 20-day MAs is unlikely until the latter part of next week - assuming no rout past November lows.

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