Thursday, 19 February 2009

Important to monitor the Nasdaq Composite

The two areas highlighted in yellow on the chart for the Nasdaq Composite reveal two attempts to break out to the upside from the pronounced triangular formation. Both efforts were short lived and we now confront a potential break down.

Far more than the charts for the S&P 500 and the DJIA, the chart for the Nasdaq suggests that a trading range dynamic is still in evidence for this index. Further weakness in the near term and a break below the 1440 level - the closing low on January 20th - would strengthen my opinion that the bullish camp are starting to lose heart at current levels.

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