The Technicals of the Major Indices

Below I am including some comments related to the charts of some of the most widely followed indices.

Dow-This index surpassed resistance at 12300.  50>200 DMA and prices have exceeded both.  It is also approaching the upper boundary of it Bollinger bands.

Dow Transports-Has broken above resistance at 5050.  200>50 DMA and prices are above both.

NASDAQ-Not as good looking as the above charts.  200>50 DMA.  Price is above both.  Significant resistance point is still approaching at 2750.

SP500-Chart has overtaken its key resistance point today at 1290.  We need to see some confirmation that these levels are sustainable.  If it is sustainable the SP500 would provide support for the DOW's recent moves up.  200>50 DMA but price is above both and testing the upper bound of it's Bollinger bands.

Russell 2K-Test of 770 mark is coming up.  Prices just rose above 200 DMA today.  200>50 DMA.  Upper Bollinger bound of it's Bollinger bands is approaching.

Overall all of the indices have improved.  The leader is the Dow with it's price above the moving averages and the averages in the correct order.  This move up has been confirmed by the transports as they have broken past significant resistance.  Need to see if the NASDAQ, SP500 and the R2K will follow but none of the three are looking too bad either.

Technical Analysis 10/13/11

The market has made a move up including a breakthrough the 50 day moving average.  Is this a new move to the upside or just a reflexive bounce from oversold levels?

Let's look at the charts:

Dow:  Now that the 50 day has been overcome resistance at the 11600 level is the next point of interest.

NASDAQ: 2643 is the next point of interest.

SP500: Next point of interest is 1230.

The moves up have been confirmed by the transports which are moving up in identical fashion to the indices which reflect that there is no divergence in the moves up recently.

Technical Performance of the Indices

For the first time since July the indices have climbed above their 50 day moving average.  The move took place in all of the major averages except for the Russell 2000.  The move took place on below average volume and there is significant resistance above this point.  We need to see follow through now but before we do let's see how the retest of the 50 day line holds.  Stay tuned.

Test of Moving Averages

There seems to be big resistance at the 50 day moving average for the Dow, NASDAQ, SP500, the Russell 2000, and the Dow Transports.  This is the 4th attempt over the last few months where prices have headed toward the moving average line only to run out of steam and bounce back.

NASDAQ Price Update

Two days in a row that the NASDAQ has made an effort to climb above it 50 day only to fail.

SP 500 Current Price Update

SP500 current price: 1187
SP500 50 day moving average: 1208

Test of 50 day is coming up.  Lets see what happens.