Filed under: After the bell, Good news, Middle East, Citigroup Inc. (C), Wachovia Corp (WB), Technical Analysis, Economic data, Wells Fargo (WFC), Commodities, Oil, DJIA, Housing, Federal Reserve
True, no one on the trading floor of the New York Stock Exchange Friday yelled, “It’s a return to the ‘Roaring 90s,’ “ but given the way the U.S. economy and the stock market have gone in 2007, it’s a start.
The Dow Jones Industrial Average closed Friday up 59.98 points to 13,371.71 - - hardly the stuff of a headline, but it was a technically-significant day.
The Dow’s accomplishment? On Friday the Dow closed above the critical 200-day moving average at 13,250.10 - - the toughest moving average to break - - for the third consecutive day. Technical analysts argue that three consecutive closes above the 200-day moving average is a bullish sign. [For background on the Dow and the 200-day moving average, click on this bloggingstocks link: “Fed be nimble, Fed be quick.”]
Hence, the Dow has cleared a major technical hurdle. The ‘three closes above 200′ does not guarantee that the rally will continue, but it is a step in the right direction.
Continue reading For DJIA, 3 up days and a technical hurdle cleared
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