The
Weekly Report For June 29th - July 3rd, 2009
June
21, 2009- Market Summary
From an active trader's perspective, the financial markets
are in an interesting position. As we've mentioned in our previous
reports, the S&P
500 and the Dow Jones Industrial Average have been struggling
to move beyond the resistance of their respective 200-day exponential
moving averages for most of June. Meanwhile, the smaller-cap indexes
such as the Russell 2000 and the Nasdaq have broken beyond their
respective 200-day exponential
moving averages and technical indicators are suggesting that
theses indexes could continue to climb. It seems as though the resurgence
of the retail investors' risk appetite has been fueling the recent
rally, and many think that this trend will continue. Given the divergence
between the different indexes, the best bet may be way wait on the
sidelines to until we see if there is enough conviction to reverse
the underlying downtrend.
(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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