December 19, 2007 - Market Recap

Todays focus is only going to be on the Nasdaq composite index. The 8 day moving average is below the 21 day moving average which is below the 55 day moving average. This shows that a general downtrend is occurring. Until that switches the long term, medium and short term trends are all down. The daily price is also below all of the moving averages.

The volume also did not increase much today. There is no steam for the bulls to raise prices upward. There was also very little price change. The stochastics are also included for completeness. Even though we got the oversold cross saying it is time to head higher, the other indicators disagree with it.

The 5 day moving averages of the open and close have not crossed over yet. We may see that cross but I will be skeptical unless we get the signal as well in the SVAPO. It is getting close to where a signal in SVAPO should occur, but the volume will have to pick up as well. Still believe this is a slight upturn during expiration week and will turn on a dime and go back down early next week.