A Strong Dose of Volatility
Submitted by My Ambitions as a Trader and Investor
Action junkies and risk-loving traders definitely got their fix today as the major indices took a plunge. The DJIA and the S&P eventually found support above their 20 day MA’s which they successfully bounced off of. It seemed as if the selling pressure finally subsided minutes before the market close as the indices closed a slightly higher than their lows. The NASDAQ fared the best as it closed comfortably above its 10 day MA. The recent strength in the NASDAQ seems to be indicating that the institutions are parking their money in technology and medical-related stocks. While the DJIA has lost institutional money (banks have withdrawn assets from DJIA component stocks), the NASDAQ seems to still contain a healthy dose of institutional sponsorship.
