Well, this looks encouraging. On Friday, the NASDAQ Composite closed right on the 50-day moving average, with volume that we haven't seen on an up-close day since December. Having already poked above the 50-day a couple of times, surely it must be ready to retake the 50-day MA. Technology stocks have been showing more strength. Is it time for tech stocks to lead an advance?
Not so fast…
The Dow Jones Industrial Average formed a pattern many traders looking for short trades consider a high probability setup. It rebounded to the 50-day MA, but turned back and picked up volume on the down-close:
The S&P 500 looks ready for more downside as well:
Have you thought about taking a vacation?
Of course, there's much more you need to know and many more stocks you can capitalize upon each and every day. To find out more, type in www.markettamer.com/seasonal-forecaster
Copyright (C) 2013 Stock & Options Training LLC
Unless indicated otherwise, at the time of this writing, the author has no positions in any of the above-mentioned securities.
Gregg Harris is the Chief Technical Strategist at MarketTamer.com with extensive experience in the financial sector.
Gregg started out as an Engineer and brings a rigorous thinking to his financial research. Gregg's passion for finance resulted in the creation of a real-time quote system and his work has been featured nationally in publications, such as the Investment Guide magazine.
As an avid researcher, Gregg concentrates on leveraging what institutional and big money players are doing to move the market and create seasonal trend patterns. Using custom research tools, Gregg identifies stocks that are optimal for stock and options traders to exploit these trends and find the tailwinds that can propel stocks to levels that are hidden to the average trader.
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