Wednesday, October 19, 2005

Nasdaq bounces off of dual resistance


Nasdaq bounced off of dual resistance today: the declining 10-day SMA and 200-day SMA. You have to weight the price action by the volume, so this is pretty bearish stuff over the past couple weeks. If the volume balloons while price declines over the next few days, then the nasdaq may stay oversold for quite a while.

1 Comments:

At 2:30 PM, Blogger Chris Perruna said...

Jon,
I was wondering if you are still watching the new high/new low ratio to gauge the strength of the market. If you are still reading my screens, you know that they have been extremely negative over the past month and very weak over the past two months. All year they have lacked strength and have been dead on with showing us they way the market will trade. I know both you and I have liked FORD all year long (I have seen your software picked it up recently as have my weekly screens). I would be interested in your take now that it is holding the 200-d m.a. Good to talk to you!
-Chris

 

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