I mentioned the past few weeks that I should have kept a closer eye on the NASDAQ versus my normal heavy emphasis on the S&P 500. The reason for this is the market bounced as the NASDAQ hit its 50 day moving average – indeed right after it broke it intraday. Well, here we are again. At this moment we are slightly below 2728, the 50 day exponential MA. (for those curious the simple moving average is 12 points higher at 1240) Two weeks ago the NASDAQ did not close below the 50 day, so if that happened today it would be another change in character.
As mentioned this morning, it remains a time to be cautious as the market character seems to now finally be changing these past 2 weeks.
Update 1:35 PM – like clockwork the buyers came in to defend this spot and the NASDAQ picked up 6 points and now sits at 2731. Somehow I don’t think I am the only one who watches key technical levels… ahem.