Broken Down
By Michael on Jun 21, 2004 in Stock Market
Well the NASDAQ fell out of that symmetrical triangle today. But this trippy & tricky market always has a back up plan to keep the masses on their toes. As you can see by the chart below the Naz is sitting just a hair above both the 50 and 200-day moving averages. A break below both of those lines would be quite the bearish event. On the other hand, it would set up a wicked bear trap. Fun times! 
The picture painted by the moving averages shows just how sideways this market has been. The 50 dma is at 1,973, the 200 dma is at 1971 and my Multiple Moving Averages (12 exponential moving averages) range from 1974 to 1985. So those 14 averages are within a 14 point range. According to Guppy’s MMA theory we should expect a big move soon to correct this agreement in price. Here’s what the chart looks like with the MMAs:
Tags: Multiple_Moving_Averages, symmetrical-triangle, Technical Analysis
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