Major Averages Test Stronger Support

02/08/2010 9:54 am EST

Focus: STRATEGIES

Thomas Aspray

, Professional Trader & Analyst

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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.