May 7, 2008 Stock Market Recap
The sellers stepped their game up today and wiped out most of last Thursday’s gains. Yesterday I was surprised that stocks traded opposite the dollar. That dynamic continued today and oil traded up along with the dollar. I’m not sure what to make of that but it is a notable change of character. What I do know is that the indices are heading for some important support levels.
The Dow dove 1.6% after toying with its 200-day moving average for the fourth session in a row. 12,850 looks like an important level because the March trendline crosses February support/resistance in that area.
The Nasdaq is also closing in on its February high, which should be support.
The S&P actually slipped back below its February high today but it’s still above the upward sloping March trendline.
All the short-term trends flipped to down today.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Primary | Down | Down | Down |
| Intermediate | Up | Up | Up |
| Short-term | Down(-) | Down(-) | Down(-) |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I’m simply using the indices’ relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
Post from: Trader Mike's Blog
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