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Saturday, March 29, 2008 4:31:20 PM
Amateur Investors Weekend Stock Market Analysis (3/29/08)
http://www.amateur-investor.net/Weekend_Market_Analysis_Mar_29_08.htm
The market pulled back this week on diminishing volume after rallying strongly the previous week. The Dow stalled out at its 38.2% Retracement Level near 12600 (calculated from the October high to its January 23rd low) and has dropped around 400 points. Also notice volume dropped off significantly as the Dow pulled back from Tuesday through Friday.
If the Dow is going to maintain its rally from the most recent low it must hold support at or above its 61.8% Retracement Level near 12190 next week (calculated from the low made on 3/17 to the high made on 3/24).
The Nasdaq rallied back to its 50 Day EMA (blue line) near 2340 and then stalled out on Tuesday. This has been followed by a 3 day pullback with a substantial decrease in volume as well.
If the Nasdaq is going to maintain its rally from the 3/17 low it needs to hold support next week at or above its 61.8% Retracement Level which is near 2230 (calculated from the March 17th low to the March 25th high).
As far as the S&P 500 it also stalled out near its 50 Day EMA (blue line) and then pulled back from Tuesday through Friday on diminishing volume as well.
Just like the Dow and Nasdaq it will be important next week for the S&P 500 to hold support at or above its 61.8% Retracement Level which is around 1296 (calculated from the March 17 low to the March 24 high) if the rally from the March 17th low is going to continue.
Overall next week is going to be a pivotal week for the major averages and if the rally from the March 17th lows is going to continue they must hold support at or above their 61.8% Retracement Levels mentioned above. If the major averages fail to hold support at their 61.8% Retracement Levels next week then that would likely lead to an eventual retest of the March 17th lows.
http://www.amateur-investor.net/Weekend_Market_Analysis_Mar_29_08.htm
The market pulled back this week on diminishing volume after rallying strongly the previous week. The Dow stalled out at its 38.2% Retracement Level near 12600 (calculated from the October high to its January 23rd low) and has dropped around 400 points. Also notice volume dropped off significantly as the Dow pulled back from Tuesday through Friday.
If the Dow is going to maintain its rally from the most recent low it must hold support at or above its 61.8% Retracement Level near 12190 next week (calculated from the low made on 3/17 to the high made on 3/24).
The Nasdaq rallied back to its 50 Day EMA (blue line) near 2340 and then stalled out on Tuesday. This has been followed by a 3 day pullback with a substantial decrease in volume as well.
If the Nasdaq is going to maintain its rally from the 3/17 low it needs to hold support next week at or above its 61.8% Retracement Level which is near 2230 (calculated from the March 17th low to the March 25th high).
As far as the S&P 500 it also stalled out near its 50 Day EMA (blue line) and then pulled back from Tuesday through Friday on diminishing volume as well.
Just like the Dow and Nasdaq it will be important next week for the S&P 500 to hold support at or above its 61.8% Retracement Level which is around 1296 (calculated from the March 17 low to the March 24 high) if the rally from the March 17th low is going to continue.
Overall next week is going to be a pivotal week for the major averages and if the rally from the March 17th lows is going to continue they must hold support at or above their 61.8% Retracement Levels mentioned above. If the major averages fail to hold support at their 61.8% Retracement Levels next week then that would likely lead to an eventual retest of the March 17th lows.
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