Friday, June 13, 2008
Markets Close at High on Friday
The S&P, Nasdaq and Russell 2000 (RUT) closed at their high for the day on Friday, while the DJIA close with two points of its high. This was a strong rally off of bullish harami candle patterns on Thursday. This is a strong finish to what had been a week of selling after last Friday's, June 6, large selloff following a weak unemployment report that morning.
Friday's rally brings the Nasdaq Composite and RUT back above their respecitve 50 DMA. Today's candle for both indices is confirmation of Thursday's bullish harami candle pattern.
The Nasdaq closed above its 50 DMA and is still below the 20, 30 and 200 DMA. Friday's close is above the January - April high 2,425 horizontal resistance area. This is also above the double top support low that was formed on May 23. Key question: Will this be a failed double top support break or is this simply a test of the break that will form a lower high and then resume the move to the double top target price area of 2,300?
The RUT closed right at its 30 DMA. The RUT is now above the 50 DMA, at the 30 DMA and below the 20 and 200 DMA. The RUT closed a fraction above the January high 731 horizontal resistance area. This is a key pivot area.
We will post more on Friday's action later and throughout the weekend.
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5 comments:
Hi Dave, Thanks for the insight into the markets. Your wisdom and generosity to us all is greatly appreciated. I'm in your advanced
technical analysis class on Monday & Wednesday.I was wondering what the audio analysis is you are talking about in todays post. Any time you'r talking I want to be there and I'm not leaving till you'r done. ;-)
Thanks again Wayne Wittman
Thanks Dave for the analysis of Friday's market action. As a new investor I am having a hard time understanding the markets. I appreciate the insights you provide. Thanks also for answering my question regarding the inverted hammer candle pattern. Also you refer to an audio analysis. How do I get access to this? Thanks again for your help and insight!
Derek Epley
Thanks Dave I watch your blog every time I go to trade. You are so practical - can't wait to see more of you on this blog.
Hi Dave!
I was happy to read today that you want to add more information to your blog! We can count on you that anything you add will certainly be an asset to our education.
As I have mentioned in the past, I know that you enjoy helping new stock traders learn how to trade -you have helped put me on the right path and I am grateful.
Sincerely,
Denise
Wayne and Derek,
They are the TRs.
Dave
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