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May 28, 2010 / Jeb

Transports Still Staying Above 200 Day, Important Support Must Hold

Although the emerging markets and the industrials have experienced technical damage by falling below the 200 day moving average, the Nasdaq Big Caps and transports are showing signs of support coming in at the 200 day moving average.

The 200 day moving average is the most important and reliable moving average when showing signs of support or resistance for a stock.  Transports are showing strength and it does not yet confirm a bear.  A significant break below the 200 or failure to break the 50 day on the upside will prove that this is truly a bear and a time to short.

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