"They" tried to break the market, especially the NASDAQ this morning but buyers stepped up to push the indices back into positive territory. The NASDAQ cut below its 50 and 200 day moving averages, which should have been very bearish. But that dip turned out to be yet another head fake. The NASDAQ closed at the highs of the day after rising above all of those moving averages I mentioned yesterday. Even though the market is just going sideways, the action looks more bullish than bearish to me. For the last four days we've alternated direction: down, up, down, up. And both up days were on higher volume than the preceding down day. On Balance Volume still looks very bullish on the S&P 500. And even the SOX showed signs of life today after refusing to go down anymore the preceding two days. Still, it's hard to get excited about any potential moves because of the lack of follow through of late. There has been some good action 'under the covers' of the indices though. I plan on staying real light on the swing trades and concentrate more on finding intraday movers.
Moving Averages Provide Support
Essential Reading
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