Feb. 23, 2007 Stock Market Recap

The major indices sank in unison on Friday. They were all down between 0.3% and 0.4%. It was a relatively quiet session that brought the Dow and S&P 500 back to technically important levels. The Dow pulled back about 150 points from its mid-week high and is approaching a couple of trendlines. This could be a big week for the Dow as it tests support:

The S&P closed near its lows for a change. It’s sitting on the top of the consolidation from earlier this month, which it’s been bouncing off of all week.

The Nasdaq is building support above the January high. Stochastic has me a little concerned but it could work off the overbought condition by going sideways.

The Cubes (QQQQ) are still looking for a close above the January high. Two bearish candlesticks in a row along with overbought stochastic has me thinking that it’s more likely to break down below the blue trendline.

The Russell 2000 still looks like the strongest of the indices that I track.

Trend Table

No changes but the S&P is getting close to its 10-day moving average.

Trend Nasdaq S&P 500 Russell 2000
Primary Up Up Up
Intermediate Up Up Up
Short-term Up Up Up

(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend

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  1. […] how much further can the Dow (above) continue without even a slightly meaningful correction. As TraderMike pointed out, the Nasdaq market is ripe for a correction (probably at least back to the moving average) and so […]