Thursday, January 08, 2009

Stock Market Commentary

Wednesday's selling didn't morph into something worse and it was good to see buyers step in before indices made it back to their respective 20-day/50-day MAs. This is not to say indices won't get there but there is reason to expect these moving averages to hold as support. The Dow was interesting as it held rising support connecting November and December reaction lows

And was one index to actually make a positive test of its 50-day MA. Also note the likelihood of a head-and-shoulder reversal pattern:

Little else to add until the Jobs Report hits the tape.

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