Stocks ended mixed but near their intraday lows after Greece’s Debt was downgraded by Moody’s. Volume totals were mixed compared to Friday’s levels; higher on the Nasdaq and lower on the NYSE. Advancers led decliners by nearly a 2-to-1 ratio on the NYSE and by a 5-to-4 ratio on the Nasdaq exchange. There were 31 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 19 issues that appeared on the prior session. New 52-week highs outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange.
200 DMA Line Is Resistance:
The MSCI World Index rose for a fifth consecutive day which was its the longest winning streak since October 2009 as the US dollar continued its 5-day slide against the euro. This should not surprise any of our readers because we have written for months about the inverse relationship between the dollar and dollar denominated assets (mainly stocks and commodities). That said, the euro edged higher after European industrial production rose which suggests the global economy continues to rebound. The euro and US equities pulled back after Moody’s cut Greece’s credit rating and ended near the intraday lows.
Market Action- In A Correction:
The market is currently rangebound with resistance in the the benchmark S&P 500 index near the 200 DMA line and support near 1040. One would be wise to expect to the sideways rangebound action to continue until either support or resistance is breached. The S&P 500 marked Day 14 of its current rally attempt while the the Dow Jones Industrial Average completed Day 5 and the Nasdaq Composite marked Day 3. At this point, the window is now open for any of the major averages to produce a sound follow-through day (FTD) (until the recent lows are breached). Furthermore, it is well known that a market should not be considered “healthy” unless it trades above its rising 200-day moving average (DMA) line. The fact that all the major averages are below both their 50 & 200 DMA lines bodes poorly for the near term. That said, the bears will likely remain in control until the popular averages close above their important moving averages. Trade accordingly.
Host Of The #SmartMoneyCircle Podcast, Founder and CEO of 50 Park Investments. Adam provides weekly market updates to ChartYourTrade.com readers. He is a FORBES Contributor and is a frequent guest on all the major financial media outlets.
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Disclaimer: All communication from ChartYourTrade is general in nature and for educational and general informational purposes only. Under no circumstance should it be considered personalized investment advice. All our work is general in nature and not specific to any one person. All the information on this site and/or that originates from us, or any of our partners or affiliates, is for educational and informational purposes only and is NOT a recommendation to buy or sell anything. To avoid any conflicts of interest, we do not have a working relationship with any of the companies mentioned in our work. Furthermore, we may have a long, short, or no position in any, or all, of the names that appear in our work and they may change at any time without notice. Investing and trading in capital markets or using margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you as well as for you. Before you decide to invest or trade in capital markets you should carefully consider your investment objectives, level of experience, and risk appetite, among other factors. The possibility exists that you could sustain a loss of some, all, or more of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with capital markets, investing/trading, and seek specific investment advice from an independent financial advisor and other professionals. Remember all the information we provide is for educational and general informational purposes only and is subject to change without notice.
Stocks Flirt With Resistance
Monday, June 14, 2010
Market Commentary:
Stocks ended mixed but near their intraday lows after Greece’s Debt was downgraded by Moody’s. Volume totals were mixed compared to Friday’s levels; higher on the Nasdaq and lower on the NYSE. Advancers led decliners by nearly a 2-to-1 ratio on the NYSE and by a 5-to-4 ratio on the Nasdaq exchange. There were 31 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 19 issues that appeared on the prior session. New 52-week highs outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange.
200 DMA Line Is Resistance:
The MSCI World Index rose for a fifth consecutive day which was its the longest winning streak since October 2009 as the US dollar continued its 5-day slide against the euro. This should not surprise any of our readers because we have written for months about the inverse relationship between the dollar and dollar denominated assets (mainly stocks and commodities). That said, the euro edged higher after European industrial production rose which suggests the global economy continues to rebound. The euro and US equities pulled back after Moody’s cut Greece’s credit rating and ended near the intraday lows.
Market Action- In A Correction:
The market is currently rangebound with resistance in the the benchmark S&P 500 index near the 200 DMA line and support near 1040. One would be wise to expect to the sideways rangebound action to continue until either support or resistance is breached. The S&P 500 marked Day 14 of its current rally attempt while the the Dow Jones Industrial Average completed Day 5 and the Nasdaq Composite marked Day 3. At this point, the window is now open for any of the major averages to produce a sound follow-through day (FTD) (until the recent lows are breached). Furthermore, it is well known that a market should not be considered “healthy” unless it trades above its rising 200-day moving average (DMA) line. The fact that all the major averages are below both their 50 & 200 DMA lines bodes poorly for the near term. That said, the bears will likely remain in control until the popular averages close above their important moving averages. Trade accordingly.
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Disclaimer: All communication from ChartYourTrade is general in nature and for educational and general informational purposes only. Under no circumstance should it be considered personalized investment advice. All our work is general in nature and not specific to any one person. All the information on this site and/or that originates from us, or any of our partners or affiliates, is for educational and informational purposes only and is NOT a recommendation to buy or sell anything. To avoid any conflicts of interest, we do not have a working relationship with any of the companies mentioned in our work. Furthermore, we may have a long, short, or no position in any, or all, of the names that appear in our work and they may change at any time without notice. Investing and trading in capital markets or using margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you as well as for you. Before you decide to invest or trade in capital markets you should carefully consider your investment objectives, level of experience, and risk appetite, among other factors. The possibility exists that you could sustain a loss of some, all, or more of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with capital markets, investing/trading, and seek specific investment advice from an independent financial advisor and other professionals. Remember all the information we provide is for educational and general informational purposes only and is subject to change without notice.
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