How to Play With Moving Averages

On Monday I promised to discuss the 50- and 200-day moving average lines this week. Since the Dow Jones Transportation Average came all the way down to its 200-day line today and managed to bounce, I'll tackle the subject today.

To put this in perspective, the 200-day moving average of the S&P 500 sits around 1310 now, so that was quite an intraday spill for the transports. You can see that, on the transports index, the 50- and 200-day lines are getting rather close. At this stage they are about 50 points apart....415 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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