Saturday, May 24, 2008

Market - My take

Market in correction
  • Nasdaq - Failed at 200 day MA and 20 day ema. Nasdaq oversold on daily basis , but still overbrought on weekly basis. 4 distribution days in Nasdaq.3 or 4 accumulation days. In correction
  • S& P 500 - Failed at 200 MA and 20 EMA. Hitting 50 MA at the moment. Going to be in this range for a while 1375 - 1425. 4 distribution days and 2 accumulation days.
  • With 200 day MA poiniting down and market still below 200 day, the uptread we have for the last 2 months can not be taken with confidence.
  • During the last 2 months volume is below average. So institutions are not participating fully
My strategy : Either wiat for the market to clear the 200 day MA to the upside or wiat to see it come down little more and hit some of my buy points. Which will be oversold on weekly , hitting previous lows made 2 months before.

Sector watch : To add later. Just scanned it. Gold , Oil , Nuclear in uptrend.

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