The
Weekly Report For March 30th - April 3rd, 2009
March
29, 2009- Market Summary
The impressive rally spurred in part by the Fed's announcement that it would be buying
hundreds of billions of dollars worth of debt securities continued last week. The news
release caused all four major indexes to rise, but
buying pressure exhausted slightly as they neared the resistance
of their respective 50-day moving averages. The continuance of the rally last week has
brought all four indexes above these levels of resistance, adding strength to the debate over whether the market has hit bottom. But, as mentioned last week, each of the major indexes remain below their
200-day moving averages, and have notched a series of lower highs. From a technical perspective, we continue to remain in a downtrend.
The continuance of this recent rally, however, has brought hope that this technical downtrend could be ending. At the beginning of last week, we notched a higher low on all four charts, which are approaching higher highs as well. The Nasdaq 100 in particular has approached the resistance set by its previous high around 1285. If this rally continues into this week, we should see the major indexes setting new highs, which could mean an end to the downtrend and further price appreciation toward the 200-day moving averages. For more, see Market
Bottom: Are We There Yet?
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