Resistance Still Ahead

Mar 19, 2008: 10:14 AM CST

Tuesday’s volatile rally was impressive, amassing over 4% for almost all major US Market Indexes. Where does that rally take us on the charts?

First, let’s look at the returns:

Now, let’s view a few charts, noting the potential overhead resistance that must be cleared to be able to get more bullish:

The level just beneath 12,800 would take remarkable buying pressure to overcome. Also, the market is currently failing (intraday) at the declining 50 period moving average, which as served as resistance two times previously.

The NASDAQ (and QQQQ) have some significant resistance to overcome as well:

Resistance comes in the form of the declining 20 period moving average, which has contained price numerous times previously. Also, the 2,275 level has provided recent resistance and must be cleared.

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There’s so much developing in the market right now it’s hard to address it all in simple, concise posts!

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