Tuesday, February 16, 2010

Stock Market Commentary: 20-day MAs break on MACD 'buys'

Markets continued their advance as they pushed above 20-day MAs and in some cases, 50-day MAs. The Nasdaq broke through its 20-day MA on slightly lower volume than Friday, but with a MACD trigger 'buy' and OBV 'buy' trigger. The 50-day MA is only a few points overhead but with other indices breaking past 50-day MAs the odds favour the Nasdaq doing the same.

The Dow posted a MACD trigger 'buy' as leadership moves away from staid large caps to more speculative tech stocks.

The Nasdaq 100 had the distinction of a dual break of 20-day and 50-day MAs - with the MACD trigger 'buy':

The Russell 2000 cleared both its 20-day and 50-day MAs and had a MACD trigger 'buy'

The only index to struggle a little was the S&P; it barely managed a break of its 20-day MA or trigger a MACD 'buy'

So while markets enjoyed across the board strength, after three days of gains its likely we will see markets ease a little with markets looking to their 20-day MAs for support.

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