Major Averages Test Stronger Support
02/08/2010 9:54 am EST
Stocks were down for most of Friday’s session, but then reversed in the last hour to close higher. The NYSE tested its rising 200-day MA, as did many of the other major averages, whether they were tech or small caps. The reversal is a short-term positive, and the NYSE A/D line has also reached its longer-term EMA support. The recent correction has turned the sentiment more negative, which is needed before the market can turn higher. The intermediate trend still looks positive.