“Even for the layman, current market technicals paint a clear picture why this week is key for global stocks’ rally. Thanks to Barry Ritholtz over at the Big Picture blog for succinctly wrapping up just where the major indexes sit as we head into the trading day, and why this is a critical week for major world stock indexes.
In the post Ritholtz lays out the technical levels for the S&P 500 SPY +0.44%, the Dow Jones Industrial Average DJIA +0.43%, the Nasdaq Composite COMP +0.26% and the small-cap Russell 2000 Index RUT +0.40%.
S&P 500
The S&P 500 has pierced its uptrend of the summer rally and sits right at the 50-day moving average. After making a new high a few days after the Fed’s announcement of” QE3,” the index has made a higher low and lower low. The S&P 500 opens the week at a critical level and really needs to prove itself.
Dow industrials
Ditto for the Dow. “
