The
Weekly Report for September 15th - September 19th, 2008
September
14, 2008- Market Summary
Last week, we mentioned that the bears swiftly answered
many questions of whether the market would be able to rally by sending
the markets back into bear market territory. The ongoing problems
in the financial markets put pressure on the broad markets for another
week and now many traders are questioning the future of Lehman
Brothers Holdings Inc. (NYSE:LEH).
The chart of
interest this week is of the Nasdaq because it dropped below its
July low near 1761. The drop below the support level is a technical
signal that the selling pressure is not over yet and that we could
see continued weakness in the week ahead. We've chosen to add the
RSI
to the bottom of the chart because it still has some room to move
before it signals an oversold
condition (below 30). You'll also notice that the 50-day moving
average and 200-day moving average have started to show signs of
divergence, which suggests that we will likely continue seeing an
uptake in volatility and longer-term pressure to the downside.
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Have a Great Day!
Casey Murphy
Senior Analyst, ChartAdvisor.com
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