Thursday, 12 March 2009
The follow through to Tuesday’s big rally was muted, to put it simply. Equities got off to a good start but as the session wore on there seemed to be little appetite to stretch further towards some clear overhead resistance.
The chart for Nasdaq 100 (NDX) shows quite clearly that this index will confront the combination of two major moving averages which have converged around 1140 as well as a previous support level which could now be construed as a resistance layer.
In general in reviewing the charts presented today there are a lot of descending wedge patterns across a variety of asset classes which suggests that deflationary pressures are still very much alive and well.