Intraday Market Thoughts

Archived IMT (2010.10.05)

by Ashraf Laidi
Oct 5, 2010 18:05

DJIA & SPX 200-WEEK MA? SEE CHART of both indices As US equities advance higher, its time to give a serious look at those even numbers that everyone likes to quote; 11,000 in the Dow Jones Industrial Average and 1,200 on the S&P500 both present the current 200-week MA. Readers of these column have grasped the importance of 200-moving averages (day and week) as seen in the relevance of the USD Index and EURUSD. Both averages were last above their 200-WK MA in June 2008. Since then, the Dow had several near attempts to break it but failed in all of them. Also watch that in both SPX & Dow, the 61.8% retracement of the decline from the all-time high to the 2009 low lie above these 200-WK MAs. So 11K on the Dow and 1200 on S&PX are legitimate upside targets for technicals during the upcoming earnings season.


Latest IMTs