Tuesday, February 10, 2009

Semiconductors to hold 50-day MA?

Yesterday's tight trading will provide swing trade opportunities by buying or selling the break of the high/lows (stops on the flipside). However, beyond today much will depend on the semiconductors and how they react to the newly upticked 50-day MA. If they hold the average it will boost tech averages and take large and small caps with it.

But with stochastics overbought and trend strength non-existent the 50-day MA will likely see another test very soon; probably starting with a sell-the-stimulus today.

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