Rejected By the 200 Day MA
14th May 2008
The Labor Department reported that CPI increased less than expected in April. It appears that no one from this government agency has been to the grocery store lately (never mind the gas station), traders apparently believed this piece of economic news and pushed the stock markets up more than 1% on the open.
The DJIA, S&P 500, and NASDAQ all virtually touched their 200 day MA, and hung around there all day, only to give back half of those gains in the final hour. Since volume was weaker than yesterday it is hard to tell if this is a shakeout or a reminder that the stock market is still in a primary down trend.
JD