Courtesy of John Nyaradi
The Bulls Tried to Charge the All Important 50 Day Moving Average Today and Failed
In the face of ongoing disappointing economic news, major indexes rallied in an attempt to overtake the all important 50 Day Moving Averages but fell back to close lower in a failed test of the widely watched level.
We can expect more attacks in coming days and the outcome will set the tone for near term market direction.
Dow Jones Industrials: (NYSE: DIA)
Hi: 12,440
50 DMA: 12407
Close: 12,394
High above 50 DMA, Close below: FAIL
—————————————————-
S&P 500 (NYSE:SPY)
Hi: 1325
50 DMA: 1326
Close: 1320
High at 50DMA, Close below: FAIL
————————————————–
NASDAQ 100:
High: 2321
50 DMA: 2337
Close: 2310
High below 50DMA, Close below 50DMA: Fail
Economic news was poor, again, with the MBA Mortgage Index printing at +1.1 compared to +7.8 last month and April Durable Goods collapsing to -3.6% from a prior reading of +4.4% in April which was also a decline from March’s reading.
Also, nervousness continues in Europe over the fate of Greece as the Euro declined to record lows against the Swiss Franc and hovers at the all important 1.40 support level in relation to the U.S. dollar.
Tomorrow, Thursday, May 26th at 0830 Eastern Daylight Time will be a pivotal moment as the revised 1Q GDP and weekly jobs numbers are posted.
Stay tuned for further developments!
And check out SuperSectors.net for a Special Offer from Wall Street Sector Selector
Disclosure: Wall Street Sector Selector actively trades a wide range of ETFs and positions can change at any time.
Click here to learn more about John’s book and for a free membership to Wall Street Sector Selector
