The 200 Moving average is commonly used as an indicator of bull or bear stance by the hedge funds, analysts and investment banks.
If price action stays above 200 MA, it is bullish and if below 200 MA, then it is bearish.
In this chart, we can see clearly that only Nasdaq is currently above it while DJIA and Russell 2000 are still bearish. SPX500 recently closed above the 200 MA only to come tumbling down last Friday.
I post a chart last week on how certain US stocks are leading the SPX500 and may not reflect the actual stock market.
Will Nasdaq follow the other US indices and fall below the 200 MA soon ? Or will it lead the rest and charge higher ?
The obvious one is the Russell 2000 with many of the small cap companies facing a tough time coping with the low to zero revenue and still needing to cough out expenses like wages, operating costs, etc.
I expect Q2 results to be worse than Q1 and that may provides us with clearer signals on the stock market thereafter.
I will be watching this chart closely and update accordingly.
If price action stays above 200 MA, it is bullish and if below 200 MA, then it is bearish.
In this chart, we can see clearly that only Nasdaq is currently above it while DJIA and Russell 2000 are still bearish. SPX500 recently closed above the 200 MA only to come tumbling down last Friday.
I post a chart last week on how certain US stocks are leading the SPX500 and may not reflect the actual stock market.
Will Nasdaq follow the other US indices and fall below the 200 MA soon ? Or will it lead the rest and charge higher ?
The obvious one is the Russell 2000 with many of the small cap companies facing a tough time coping with the low to zero revenue and still needing to cough out expenses like wages, operating costs, etc.
I expect Q2 results to be worse than Q1 and that may provides us with clearer signals on the stock market thereafter.
I will be watching this chart closely and update accordingly.
