Stock Market Reversal Is Encouraging
05/26/2010 9:29 am EST
The selling early Tuesday was the worst I have seen in some time, probably since October 2008, so the market’s ability to reverse higher was encouraging. Even though the A/D numbers were negative, the up/down volume did close positive. For more on the technical outlook, see yesterday's Tips for Traders article. A close in the S&P 500 below 1042 would signal a drop to the 1010 area. The A/D line still is still declining, and a move through its short-term downtrend is needed to suggest a tradable low is in place.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.