Short-Term Trend Still Negative
05/19/2010 9:55 am EST
Stocks took another beating on Monday despite an early rally attempt, and the daily technical picture does allow for a further decline as the McClellan Oscillator on the Nasdaq is declining after rebounding to the zero line last week. It could drop back towards the “crash” lows at -290, the most oversold reading since 2008. Key support and the rising 200-day MA are in the 2216-2265 area. The S&P has support at 1090-1110 and the A/D line is still above its uptrend and did confirm the recent highs.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.