Thursday, January 29, 2009

Stock Market Commentary: Yesterday's gains undone

All the work done in pushing the Nasdaq and Russell 2000 above their respective 20-day and 50-day MAs was undone by Thursday's selling. Only the Nasdaq 100 closed above its 20-day MA as its losses relative to the other indices was less

The SOX made a picture perfect reversal off resistance

Volume was lighter than Wednesday but this will be cold comfort for bulls. The SOX has 50-day MA to lean on tomorrow - as does the Nasdaq 100. But large caps don't have that luxury. For them November lows look to be the target.

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