Broken Moving Averages Everywhere
Posted on September 20th, 2005 in Chart Reading, Stock Market
There was a lot of technical damage done today in the wake of the Fed’s decision to raise interest rates. Many indices broke down through major moving averages. The Dow broke its 200 DMA today after breaking the 50 DMA yesterday. Similarly, the S&P 400 broke it’s 50-day yesterday and kept sliding today. While today the S&P 500, Russell 2,000 and S&P 600 broke their 50-day averages. So there’s not much to be bullish about right now.
Here are some charts that stood out to me tonight — The Nasdaq, Chicago Mercantile Exchange (CME), Consumer Discretionary Select Sector SPDR (XLY), Alcan (AL), and the S&P 500 Percent of Stocks Above 50 Day Moving Average:
This post has 3 comments
September 21st, 2005
Yeah, man. It’s ugh-lee out there! The Fed is determined to squash housing…and take the rest of the market with the bath water…Look out below…
September 21st, 2005
Yeah, the market seems to be very weak and falling lower. We can expect a down trending QQQQ from here on and the rest of the year.
September 22nd, 2005
The bond market was one step ahead of the stock market. Yields went up substantially Friday (16 Sep) but stock was rallying on the same day.