Tuesday, March 31, 2009

Market Sentiment: New highs in Percentage of Stocks above 200-day MA

In an important first step towards building a more sustainable rally than we have seen in the past the number of stocks trading above their 200-day MAs rose for both the Nasdaq and S&P. With these new near term highs in place it will be important for this figure to stabilize above new support (former resistance) if buyers are going to accept a more stable market. The Nasdaq is more important than the S&P in this regard.

Other sentiment indicators point to an intermediate timeframe top - so the new downleg is only in its early phase.

567 Nasdaq Stocks currently trade above their 200-day MA.
366 Nasdaq Stocks trade above their 200-day MA and have a price greater than $1
196 Nasdaq Stocks met the aforementioned conditions and had a 60-day MA of Volume above 100,000 shares a day
4 Nasdaq Stocks met the aforementioned conditions and made a new 90-day high. These were

Dollar Tree (DLTR)
J2 Global Communications Inc (JCOM)
Optimer Pharmaceuticals (OPTR)

Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.