Sunday, January 02, 2011

Summary of yearend 2010 and looking at 2011 in the stock market indexes

One thing from 2010 to report on the last day of Trading. In the first 1/2 hour to 1 1/2 hour, the Put to Call ratio was extreme at 1.33 to 1.37 as reposted by the CBOE. That was actually a buy signal in the morning and that followed through as the Put to Call ratio closed at about 0.99 for 2010 in the final minutes. The last time it was that high was Nov. 29th. The Dow closed at 11,557 for 2010, the S&P500 closed at 1257, while the Nasdaq Comp. closed at 2652. Watch the markets rise again in the morning.

The 52 week high for the Dow was 11,625.
The 52 week for the S&P 500 was 1262.
and the 52 week high of the Nasdaq was 2675.

As you can see from the 52 week highs, we closed near the highs on all 3 Indexes. The best way to see where the market is headed is to keep track of the 9 day Moving averages. For example, as you can see from the chart below, the Dow & S&P 500 have managed to stay above the 9 day MA for the entire month of Dec. Any cracks in trend will show up here first. The Nasdaq was the only index during December, of the 3 Indexes, to go below the 9 day MA and that happened only on Friday. The markets will keep breaking below more Moving Averages if we are headed down. But if we break below them and manage to rise back above in a day or two, we won't be going down yet.

Let the Games begin for 2011. Good luck to all.

Labels: , , , , , , , , , ,


Post a Comment

<< Home

Technorati Profile