Saturday, May 09, 2009

Warning Signs

There are some warning signs in the horizon for the stock market.
The chart on the right side shows the ratio of Nasdaq vs S&P500 on a daily basis . Whenever this goes down and crosses 50 day moving average to the downside , the market also went down with it . Don't know if that's the case this time. Also I don't know if this is a short term issue due to rotation of money out of tech stocks and moving into banking stocks. But nevertheless this needs to be watched.

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