There is no denying the weakness in the marquee, high growth names in the Nasdaq Composite Index of late. Despite other areas of the market improving, the inept performance of the Nasdaq becomes even more pronounced on a day like today.
Pursuant to my earlier post, here is the weekly chart of the Nasdaq. The obvious observation is that we are still working through a five week-long corrective period.
It is also worth pointing out that the Nasdaq pierced its upper weekly Bollinger Band in mid-September–A rare occurrence indeed on the weekly timeframe.
What tends to follow during a price correction (as opposed to a correction through time), is that we see a test of the “middle” Bollinger Band–which is usually the 20 period moving average. As you can see, price has completed that correction down to the rising 20 period weekly moving average.
In other words, we should gain excellent insight into the “do or die” nature of the market next week with this test accomplished.
Also note that all weekly moving averages continue to clearly rise and are lined up properly–Something not seen since the final two years of the 2003-2007 cyclical bull.
3 Responses to The Nas-drag Composite Index
I am getting my ass kicked in FIO
bit of a cup and handle look to that weekly. We’ll see if that plays out.
AAPL, GOOG, IBM, and the rest of the tech world will rally soon.