Well the indices rolled over pretty hard today and are now back under their 50-day moving averages. Nobody could have ever seen this coming, right? ;-)
The Dow looks especially precarious as it's now under both its 50 and 200-day moving averages. There will probably be a death cross in a few days as well...
Hey Mike great call...do you worth WITH DaytradeTeam at all? They also put on a pretty perfect short of the Q's (this morning) for a swing trade so I was just wondering. Great call.
Mike
p.s. Is there more downside to go?
Mike,
Unfortunately I didn't short anything yesterday. But at least I recognized that things were extended and the Naz was near/at resistance and stood aside. No, I don't work with daytradeteam.
I don't know if there's more downside but if I was swing trading the QQQQs/Nasdaq I'd feel pretty confortable staying short until stochastic reached oversold. Whether price drops or not I can't say -- it could reach oversold by going sideways...
Mike, can you explain what you mean by a death cross ?
It's when a shorter-term MA crosses under a longer-term MA. Some people consider that to be a very bearish event but I actually don't put much weight on them as a signal because moving average signals lag so much