Stocks Bounce Off 50 DMA Line & Dow Hits Highest Level Since 2007!

Friday, May 18, 2012 Stock Market Commentary: Stocks and a slew of other “risk assets” fell for a third straight week after the latest round of economic and earnings data suggests the global economy is slowing, not growing. Now that we are in the latter half of earnings season, the reaction by the major averages…
Tuesday, April 6, 2010 Market Commentary: Stocks opened lower after the Australian Central Bank raised interest rates for a 5th time by a quarter point to +4.25% and Greece rejected an EU-IMF aid package. The market’s internals remain healthy as this rally enters its 6th week since the March 1, 2010 follow-through day (FTD). It…
The Tape Is Getting Weaker The tape remains very split but is getting weaker. This was the 8th consecutive week that the S&P 500 and Dow Jones Industrial average closed below their respective 50 DMA lines. More worrisome for the bulls, the Russell 2000 broke below the neckline of a big double top pattern (see…
Market Outlook- Market In A Confirmed Rally
From our point of view, the market is back in a confirmed rally now that all the major averages are back above their respective 50 DMA lines and downward trendlines. Since the beginning of May, we have urged caution as the major averages and a host of commodities began selling off. However, the fact that the pullback was shallow and the market found support at its 50 DMA line in late May, suggests higher, not lower, prices lie ahead. The next level of resistance is the 2011 highs. If you are looking for specific help navigating this market, please contact us for more information.
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Monday’s action was a strong sign for the market rally that began on the September 1, 2010 follow-through day (FTD). Looking forward, the window is now open for disciplined investors to begin carefully buying high-ranked stocks again. It was encouraging to see a flurry of high-ranked leaders trigger fresh technical buy signals and break out of sound bases in recent sessions. The next important level to watch for the major averages are their respective 200-day moving average (DMA) lines. It is important to note that approximately 75% of FTDs lead to new sustained rallies, while 25% fail. In addition, every major rally in market history has begun with a FTD, but not every FTD leads to a new rally. Trade accordingly.
By Kate Gibson, MarketWatch NEW YORK (MarketWatch) — U.S. stocks fell slightly on Wednesday after a two-day rally, with investors reluctant to make any big moves ahead of the Federal Reserve’s policy decision later in the day. “My expectation is we will sit in a sideways holding pattern until the Fed announcement,” said Randy Frederick, managing…