A knee-jerk reaction can be better identified when seeing the NASDAQ open but then starting to trade positive. Numerous stocks also illustrate the same reaction by gapping down to the T line and then starting to trade positive from there. However, the Dow has shown a strong failure at the 50 day moving average and currently trading below yesterday’s open. The Dow needs to show some good strength going into the close, otherwise 50 day moving average becomes a viable resistance level.
February 3rd Daily Market Comments
A knee-jerk reaction can be better identified when seeing the NASDAQ open but then starting to trade positive. Numerous stocks also illustrate the same reaction by gapping down to the T line and then starting to trade positive from there. However, the Dow has shown a strong failure at the 50 day moving average and currently trading below yesterday’s open. The Dow needs to show some good strength going into the close, otherwise 50 day moving average becomes a viable resistance level.