Posted by 7 January 2005

Fun with the 50-Day Moving Averages

Once again the early morning buying enthusiasm gave way to selling. I’ve been thinking that the S&P 500 had to touch its 50-day moving averages for a couple of days now. It finally tagged that line a few minutes ago. The index sprung right off of the 50, but who knows if that bounce will hold. It sure seems like too neat of a bounce to me.

The NASDAQ is in a more interesting position. It has resistance from its 50 DMA and the 2100 level just overhead. Interesting times…

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Comments

  1. Posted by Monte' on January 7, 2005 at 1:09 pm

    Mike: I just found this. any comment?

  2. Posted by Monte' on January 7, 2005 at 1:14 pm

    And check this out

  3. Posted by Michael on January 7, 2005 at 1:22 pm

    it’s long past due

  4. Posted by Monte' on January 7, 2005 at 1:33 pm

    Mabey now the U.S Economy will rightly leave the E.U. in the dust.

  5. Posted by Duru on January 7, 2005 at 7:36 pm

    Am I imagining things or does it seem like the automated trading programs are more active on the Dow and the S&P than the NASDAQ? What I mean is these big institutions seem to get more active when those indices hit “obvious” support and resistance levels than with the Nazz. Or maybe the programs are just more effective on those indices.

  6. Posted by Michael on January 7, 2005 at 7:49 pm

    I don’t think you’re imagining that. I’d bet that a huge percentage of the programs out there key off of the S&P 500.

  7. Posted by Monte' on January 8, 2005 at 11:43 pm

    The threshold securities list is 6 pages long. How many investors are victims of the Double standards that the offshore naked shorts are enriched by.
    I’ve traded lot of the stocks on this list.