Most major US indexes are flirting with their 50-day moving averages, raising questions about the short to medium trend. In the chart below we can see the Industrials testing their 50-day MA; so far support has held. It's interesting to note that it was the 200-day MA that provided a floor for the sell-off back in late July and early August.
Same story with the Transports, as they bounce off the 50-day MA in sync with the Industrials. We received the most recent Dow Theory bullish confirmation just over a week ago. Investors would do well to remember that in the face of continued geopolitical unrest and global growth worries.
The NASDAQ is also testing its 50-day aggressively. Alibaba may have triggered some of the recent weakness here, as fund managers sold off other tech names to raise cash and make room for the new entrant (which trades on the NYSE). Alibaba embodies ... Log in or subscribe to continue reading.