Stocks Slide As Global Recovery Slows

ByAdam Sarhan

The technical action in the major averages has deteriorated significantly. Not all of the major averages managed to rally above their recent chart highs, and all have now sliced back below their respective 200-day moving average (DMA) lines. It is also worrisome to see the number of distribution days pile up in recent weeks which puts pressure on the current five-week rally. Whenever a market rally becomes under pressure (as it is now), it is usually wise to err on the side of caution and adopt a strong defensive stance until the bulls regain control. Trade accordingly.

Day 3: The Selling Continues

ByAdam Sarhan

The technical action in the major averages has deteriorated significantly. Not all of the major averages managed to rally above their recent chart highs, and all have now sliced back below their respective 200-day moving average (DMA) lines. It is also worrisome to see the number of distribution days pile up in recent weeks which puts pressure on the current five-week rally. Whenever a market rally becomes under pressure (as it is now), it is usually wise to err on the side of caution and adopt a strong defensive stance until the bulls regain control. Trade accordingly.

Stocks Get Smacked As Dollar Soars!

ByAdam Sarhan

The technical action in the major averages has deteriorated significantly now that all the major averages failed to close above their recent chart highs (resistance) and sliced below their respective 200 DMA lines. It is also worrisome to see the number of distribution days pile up in recent weeks which puts pressure on the current five-week rally. In order for a new leg higher to begin, all the major averages must close and remain above their respective resistance levels. Trade accordingly.

Stocks End Lower After Fed Meeting & Tepid Economic Data

ByAdam Sarhan

Market Action- Confirmed Rally: Distribution Day Count- 3 For Nasdaq and S&P500. 2 for NYSE Comp and DJIA since July 7 FTD.
The Dow Jones Industrial Average and the NYSE Composite Index have traded above resistance at their long term 200-day moving average (DMA) lines and recent chart highs. The tech-heavy Nasdaq Composite, benchmark S&P 500, and small-cap Russell 2000 indexes still remain slightly below their recent chart highs. However, the fact that all of the major averages are trading above their respective 2-month downward trendlines bodes well for this five week rally. In order for a new leg higher to begin, all the major averages must close and remain above their respective resistance levels. Remember that the window remains open for for high-ranked stocks to be accumulated when they trigger fresh technical buy signals. Trade accordingly.