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You Are Here: Home > Articles > Commentary > Stock Market Commentary: Doji support

Stock Market Commentary: Doji support
Jul 09, 2009

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Declan Fallon

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A hectic day of morning weakness followed by afternoon strength. For the Nasdaq there was a sharp rise in volume to register a firm accumulation day. The small hammer with short term stochastics close to oversold suggests a relief rally over the next couple of days. However, 50-day and 20-day MAs exist overhead to add supply. Intermediate to long term stochastics [39,1] switched to a 'sell'.

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Small Caps fought their own battle with the 200-day MA providing support on close-to-oversold stochastics. A rally to converging 20-day/50-day MAs will be a cue for shorts to become aggressive.
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Ditto for the S&P although in this index all technicals are now negative.
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While markets are more likely to bounce in the next day or two there is little to suggest they will gain much more with 20-day and 50-day MAs overhead to add supply. Traders market.


by Declan Fallon (Fallond Stock Picks)

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