Tuesday, January 27, 2009

Stock Market Commentary: Struggling to break through moving averages

Another day for the indices to squeeze small gains without cracking through moving average resistance. The lack of follow through to the paltry gains is concerning, the next day of selling could see all three days of gains wiped out in one. The Percentage of Stocks above the 50-day MA is attempting a bounce but technicals don't suggest much confidence.

The Dow provides the best opportunity for a swing trade with a break and counter stop on Tuesday's action. Technicals point to weakness so the anticipated move would be down.

Disappointing is the best you could say as a bull.

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