The
Weekly Report For April 20th - April 24th, 2009
April
19, 2009- Market Summary
The major indexes continued their steady trek toward their
respective 200-day moving averages. Positive quarterly earnings
results from bellwethers
such as General Electric (NYSE:GE)
and Google (Nasdaq:GOOG)
helped send the stock market higher for the sixth consecutive week.
The S&P
500 and Russell
2000 are testing the resistance of their respective January
highs while the Nasdaq has already shown that this barrier might
not be as strong as many of the bears are hoping. Many active traders
are wondering whether the broader indexes will follow the Nasdaq's
lead toward the 200-day moving average or whether the wheels are
getting ready to fall off the bear market rally.
Traders looking
to get long
in this market should still continue to be wary of the overhead
resistance levels. Short-term barriers in the S&P and Russell
remain at 875 and 475, respectively, while Nasdaq traders should
be watching 1400. (To learn more about levels of resistance, be
sure to check out the Support
And Resistance section of our Technical
Analysis Tutorial.)
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