Another Volatile Week On Wall Street

The benchmark S&P 500 Index marked Day 13 of its current rally attempt while narrowly avoiding undercutting its 5/25/10 low thus far but failed to score a proper FTD due to the light volume that accompanied Thursday’s strong move. The Dow Jones Industrial Average marked Day 4 of its latest rally attempt while the Nasdaq composite marked day 2. 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. Remember, we have seen these very strong light volume rallies in the past only to fail a few days later. Trade accordingly.