Three of the major indices have stalled at their 50-day moving averages (the Dow, the S&P 500 and the NYSE Composite), but the NASDAQ is leading the way -- pushed along by successes in the technology sector and, more recently, the financial sector.In a major market turn, it is common for technology stocks to lead, as in 2003. But the NASDAQ, too, is now at a critical resistance line -- the midpoint (1,600) of its overall range that began in October.
All four of the indices appear to be waiting for the catalyst that will either move stocks higher or bring in sellers for another test of the January lows.
It is curious how the market seems to anticipate crucial happenings like the upcoming announcement today from the Treasury Department -- creating more drama as investors focus on one item of thousands that could move stocks.
All eyes will be on Treasury Secretary Tim Geithner, so let's hope that the president is correct when he said last night, "I want all of you to show up at [Geithner's] press conference as well; he's going to be terrific."
He had better be, or we may be faced with more months of market indecision.
In the meantime, if you're looking for a stock that's giving all the right technical signals, consider Cubic Corp. (NYSE: CUB), my trade of the day.
Sam Collins is a contributor to OptionsZone.com.
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