Online Stock Trading | Resistance is Proving to be Too Great for Major Indexes

Resistance is Proving to be Too Great for Major Indexes


Filed Under Market Commentary |

We are certainly seeing a market for the ages here.  The NASDAQ is having a difficult time holding its 200dma while the S&P500 can’t manage to surpass its 50dma.  Let’s not forget the NYSE composite that hasn’t been able to reach its 50dma and where the Dow is failing it.  Volume, albeit summer volume is tremendously light indicating there is absolutely no support in the market.  During the Follow-Through Day we saw tremendous accumulation in the market, but we have seen very little since suggesting this market has lost all its support.  This is exactly why we are seeing resistance levels proving mighter than the index.  The overall market doesn’t look healthy, the indexes are painting a pretty glim picture.

Neither Bull nor Bear side is winning the battle at the moment.  A dull tape can lead to actions that one would not normally take.  Most individuals crave action and its this action that leads to breaking the #1 cardinal rule of speculation.  DO NO HARM.  We must let the market come to us and we most roll with what it is giving us.  At the moment, it is offering up very few opportunities.  Even if we get a few opportunities they are gone in a flash.  Be able to snatch profits quickly and cutting losses quickly will only secure your stake for the next bull market run.

Enjoy

Market Speculator

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Comments

2 Responses to “Resistance is Proving to be Too Great for Major Indexes”

  1. z-stock, ------- http://z-stock.blogspot.com/ on August 19th, 2008 10:03 pm

    Nice article. I was wondering what the volume was saying.
    I marked the top at my blog, ( IWM $75.5) was my entry point, for shorting all the indexes.
    Isn’t it amazing that I keep marking off the market tops each cycle. I put a lot of intuition to good use, I suppose.
    Now where is that pesky market bottom? I think SPY 1100 or 1000. This is only a very pre-lim to a pre-lim call. I think there will be a meltdown in the retail sector, but I’m on wait and see, for that rumor.

  2. Market Speculator on August 20th, 2008 6:13 am

    hey z…this top calling won’t last forever. I want 1000% winners not short term tops and bottoms. But, if you can make money that is super.

    The bottom of the market may be near, who knows. I do know we haven’t seen our bottom yet. We haven’t seen any capitulation at the lows and until we get that we will not bottom.

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