March 16, 2007 Stock Market Recap

The Dow, S&P and Nasdaq each had outside days today although they closed within yesterday’s ranges. Volume increased across the board which isn’t surprising given that today was a quadruple witching day. Still, the charts don’t care about that and I have to look at the volume increase on a down day as distribution.

I haven’t posted a chart with Multiple Moving Averages (MMA) in a very long time. It’s something that I do still use when looking at charts and I find them very helpful. I don’t post them often because I don’t think they show up well on the small charts I post. But here’s a look at the QQQQ’s MMAs which show that the longer term group of averages is flipping to a bearish posture. If I were swing trading I wouldn’t be fully bearish just yet. I’d want to see the long term group fully invert and then start to spread apart. If that happens I’d look for the short term group to rally up to the long term group and then get repelled.

The Nasdaq actually broke its downward sloping trendline. Let’s see if it can stay above it and make a high higher than 2405.

The S&P 500 got above its trendline for a little while today but rolled over and closed beneath it.

If I did a recap yesterday I would have switched the short term trends to up due to the 10 DMA breaks. But they rolled over today and closed back under the 10s, except for the Russell. So I’m updating the chart as if I had also done an update yesterday. It’s interesting to note that the vicinity of the 10 DMAs seems to be a selling zone now.