Tuesday, February 03, 2009

Nasdaq held support from Nov-Jan rising channel

Although the Nasdaq spent Monday below its 50-day MA it did manage to successfully test rising support from November-January reaction lows. Money flow is on the wane so if there is to be any momentum it will need to crack through the 50-day MA over the next couple of days, otherwise a swift move down to 1,400 would appear favoured.

Transports are testing major support and what happens here will say alot by the broader market's ability to hold November lows as support.

Bulls have much work to do; bears can simply sit back and watch.

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