HELENE

Helene Meisler over at realmoney is writing this morning about the NAZDAQ and its impending problems with the 50 day SMA. She suspects that the 50 day line will soon be resistance on the Index and she makes the following observations:

"An upward-sloping moving average line is much easier to overcome than a downward-sloping one. The Nasdaq broke its 50-day moving average for the first time back in early February, but it wasn't meaningful since it was still heading upwards (the moving average line was still heading upwards). It broke it again last week and has yet to recapture it. It is still heading upwards now, but as I just described, within five trading days it will not be heading upwards anymore and will act as overhead resistance.

The DJIA does not have the same issue, since the DJIA only went to higher highs recently. The S&P is pretty much still in the same area as it was in early January, and is currently trading above (just barely) its 50-day moving average. And the Russell is still trading well above its early January levels, so here again this is not an issue.

This doesn't mean they aren't also vulnerable, but their patterns are clearly different than the Nasdaq's at present.

We still have time to get that whoosh that cleans out the sellers and gives us a better rally, but so far we've not been able to muster a selloff that makes this current oversold rally anything more than a lethargic move to relieve the oversold condition."

I think anyone who has been paying attention to the NAZDOG recently can attest to the fact that this index just can't get anything going. Everytime it rallies, it immediatly sells off. I also note the crummy action in the SMH. This action does not bode well for the overall markets.