F’ugly

If you’re the kinda person that reads this blog it’s not news to you that the markets were F’ugly on Friday. If you haven’t heard that then you can catch up here Dow drops 324 points as euro sinks or here U.S. Stocks Tumble as Job Growth Trails Forecasts. I just made some notes on the charts I looked at after the close:

On Thursday, the Nasdaq rose penetrating its 20-day moving average and pushing toward its next objective, the top of the resistance zone at around 2,325. But today happened instead and the Naz went speedily back under its 200-day moving average. It’s been hanging around there for more than 2 weeks. It just may need to gestate for a little while longer.

The Russell 2000 looks a bit better because it looks like it’s just basing between the 20 and 200 moving averages. It did close lower than its May closing low, but still has a while to get down to its February lows.

The S&P and Dow have been meandering under their 200ma for a couple of weeks. Both are getting pretty close to violating their February low closes. All the indexes, along with many individual stocks, have ugly evening star candlestick formations.

We still need confirmation of the candlesticks on Monday to see if we continue lower. News events over the weekend will control Sunday night futures trading…which in turn will affect the cash markets. I’d sure like to see oil pickup some and the US dollar to dwindle some, but I’ll play ‘em like I see ‘em. Have a great weekend!