Tuesday, February 4, 2014

Chart points to watch: S&P 500 1,708 and Dow's 200-day line - The Tell - MarketWatch

Chart points to watch: S&P 500 1,708 and Dow's 200-day line - The Tell - MarketWatch: "“In theory, a move to 1750 that breaks a 14-month trend-line should lead to even further deterioration,” Krinsky wrote in a note today. But he adds his team “could envision a scenario where SPX pushes down to 1750, ‘breaks’ the trend-line, only to reverse higher.”"



Dow could stabilize: The Dow DJIA -2.08%  on Monday has been testing its 200-day moving average around 15,470. MKM’s Krinksy has suggested that actually could bring some stability.



“Note that in the October 2013 correction, the INDU was the only major index to test its 200 DMA, and that marked the low for the correction on Oct. 9th,” he writes.



“Therefore, if we see further weakness into February, we would look for the INDU to be the first index to stabilize as it tests the 200 DMA.”



–Victor Reklaitis

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