Major averages rose Friday on lower volume, with the NASDAQ just above its 200-day moving average and the S&P 500 just above its 50-day moving average. But neither average has shown signs of reviving their uptrends and many former leaders are trading well under their 50-day moving averages with a number at or under their 200-day moving averages. While central banks have been QE-friendly in terms of ongoing and future policies, the general markets show scant signs of upward momentum with the S&P 500 and DJIA moving sideways. These two averages as well as a number of European bourses are at or near new highs due primarily to the QE-effect which pumps money into the lower risk, ie, risk off stocks which in turn pushes these markets higher. Thus this is perhaps more a sign of an exhausted market being artificially pushed higher than signs of strength.
MLR - PMP 5/12/14
| Published: | 12 May 2014 12:49 ET |
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