Roller Coaster Week! Stock Market Down For The Week!

It has been a roller coaster week in the stock markets this whole week. Starting from the severe drop on Monday (Dow -0.7%, Nasd -0.83%), to the false hope on Tuesday and Wednesday (Dow +1.16%, Nasd +1.45%)and finally the dashing of all hopes again on Thursday and Friday (Dow -1.07%, Nasd -1.25%). Overall, the Dow has lost 0.62% and the Nasdaq composite has lost 0.65% this week. Such a sideways, whipsaw market has made it extremely difficult for swing traders to take positions and has kept fundamentalists guessing all week. It was clear this whole week that news have almost no authority in predicting where the market might go in the short term at all. However, technical analysis on the markets still tell a more congruent tale. The Dow and the Nasdaq composite was bouncing atop their respective 30 days and 50 days moving average support level whole week, wearing off short term overbought sentiments and poising for a rebound. Technicals remain healthy for a rebound next week with both the Dow and Nasdaq closing with a long tail bullish harami on their support levels. However, let us not make our move before the market moves its move.




.