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Hello Fellow ChartWatchers!

Chip Anderson

Chip Anderson

President, StockCharts.com

Jitters have crept back into the stock market with last Friday's big drop in the major averages.  In addition to breaking the Dow's low from the start of the year, Friday's selloff ended with the first close below the 50-day moving average since the end of October.

 

 

Note also that the RSI is now lower than it has been since late October as well and that the MACD is probably going back below zero soon.  Finally, notice that Friday's volume was the highest the Dow has seen in quite some time.  If prices don't immediately rebound Monday morning, look for the next support level to be around the 200-day moving average which is currently moving sideways near 10,550.

 

 

Chip Anderson
About the author: is the founder and president of StockCharts.com. He founded the company after working as a Windows developer and corporate consultant at Microsoft from 1987 to 1997. Since 1999, Chip has guided the growth and development of StockCharts.com into a trusted financial enterprise and highly-valued resource in the industry. In this blog, Chip shares his tips and tricks on how to maximize the tools and resources available at StockCharts.com, and provides updates about new features or additions to the site. Learn More