Sunday, April 5, 2009
Keeping an Eye on these Charts
The $SPXA50 chart is approaching the 400 resistance level. We could be nearing the time for a correction. What would be nice to see is for the 400 level to be surpassed and this rally to continue. Although the number of S&P 500 stocks above their 50 day moving average has rose dramatically since the March 6th low, the $SPXA200 has just now reached the miserable level of 77. Yes, only 77 of the 500 S&P stocks are trading above their crucial 200 day moving average. The one bright spot this is the highest level we've seen in the $SPXA200 since October of last year. The 3rd chart I'm watching closely is the $NYAD chart. If the advance/decline line can stay above the 50 day moving average will tell a lot about the future of this rally. Something else I should mention is this is the 1st time since early 2009 that the 5 day ma has been above the 65 day ma on the DeadBeatChart. The last time this occurred the S&P 500 dropped nearly 300 points. BE CAUTIOUS!!
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