Nasdaq Testing Support
06/24/2010 10:02 am EST
Stocks closed weak on Wednesday and the Nasdaq is back to its still-rising 200-day MA. The 50% retracement resistance at 2341 was hit on Monday before the market closed lower. The A/D line has pulled back after breaking its downtrend, but it is still well above its recent lows. The McClellan Oscillator closed just below its zero line and is now testing the breakout level as well as its bullish divergence support. A day of positive A/D numbers is needed to turn it higher and signal that the pullback is over.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.