A Tightening Range
19th June 2009
As expected, the stock market took a breather from its three month rally. The drop was not significant, but it was on heavier volume than the previous week. The market has been consolidating for a month now, tightening the noose around a narrow trading range.
Interestingly, the SP 500 headed south off of a resistance level reached at the start of this year, but managed to find support from the intersection of its 200 day MA and its 50 day MA. On the other hand, the DJIA could not hold support from its 200 day MA, but was held up by its 50 day MA. The Nasdaq has been leading the market up during this recent rally, but took a breather for the second week in a row. It will not be surprising if the financial markets continue to meander around over the next few weeks.
JD
