Tuesday, August 02, 2011

Several US Indexes drop below 200 day Moving Average. (UPDATE)

Many US Indexes are now below their 200 day Moving Averages. These include the S&P 500, the Russell 2000. The Dow's 200 day MA is currently at 11,995, so we aren't far from it now. The Nasdaq 200 day MA is at 2710 and we are not far from that as well. So look for these 2 indexes to get there this week. Whether the 200 day MA proves to be a strong resistance to climb back above will have to be seen. Much depends on the outlook for GDP for this 3rd quarter. But the trend now is not good and it appears the market and the Dow will not have its expected strong rally to 14,000 any time soon.

UPDATE: 10:50am PST

The Dow and Nasdaq have both now gone below their 200 day Moving Averages. The Dow has hit a low at 11961 while the Nasdaq has gone as low as 2696, which means all major US Indexes are below their 200 Day moving average.

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